SCENARIO 14-12 as a Project for His Business Statistics Class $Y _ { i } = \alpha + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \varepsilon$

Multiple Choice

SCENARIO 14-12 As a project for his business statistics class, a student examined the factors that determined parking meter rates throughout the campus area. Data were collected for the price (\$) per hour of parking, blocks to the quadrangle, and whether the parking is on or off campus. The population regression model hypothesized is $Y _ { i } = \alpha + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \varepsilon$
where
$Y$ is the meter price per hour
$X _ { l }$ is the number of blocks to the quad
$X _ { 2 }$ is a dummy variable that takes the value 1 if the meter is located on campus and 0 otherwise

The following Excel results are obtained.

$\begin{array}{lr}{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.5536 \\\text { R Square } & 0.3064 \\\text { Adjusted R Square } & 0.2812 \\\text { Standard Error } & 0.4492 \\\text { Observations } & 58\end{array}$

ANOVA
$\begin{array}{lrrrrr} & d f &{\text { SS }} & \text { MS } & {\text { F }} & \text { Significance F } \\\hline \text { Regression } & 2 & 4.9035 & 2.4518 & 12.1501 & 0.0000 \\\text { Residual } & 55 & 11.0984 & 0.2018 & & \\\text { Total } & 57 & 16.0019 & & &\end{array}$

$\begin{array}{lrrrrrr} & \text { Coefficients } & \text { Standard Error } & {\text { Stat }} & \text { P-value } & \text { Lower 99\% } & \text { Upper 99\% } \\\hline \text { Intercept } & 1.6500 & 0.2028 & 8.1359 & 0.0000 & 1.1089 & 2.1912 \\\text { Block } & -0.2504 & 0.0529 & -4.7355 & 0.0000 & -0.3915 & -0.1093 \\\text { Campus } & 0.1552 & 0.1297 & 1.1966 & 0.2366 & -0.1908 & 0.5011 \\\hline\end{array}$

-Referring to Scenario 14-12, what is the correct interpretation for the estimated coefficient for $X _ { 2 }$ ?

A) Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus.
B) Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus.
C) Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus for each additional
Block away from the quad.
D) Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus for each additional
Block away from the quad.