Instruction 13-10
as a Project for His Business Statistics Class,a

Multiple Choice

Instruction 13-10
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,number of city blocks to the centre of the university,and one of the three jurisdictions: on campus,in the CBD and off campus,or outside of the CBD and off campus.The population regression model hypothesised is:
Yi = α + β₁x_1i + β₂x_2i + β₃x_2i + ε_i
Where
Y is the meter price
x₁ is the number of blocks to the centre of the university
x₂ is a dummy variable that takes the value 1 if the meter is located in the CBD and off campus and the value 0 otherwise
x₃ is a dummy variable that takes the value 1 if the meter is located outside of the CBD and off campus,and the value 0 otherwise
The following Excel results are obtained.
$\begin{array}{l}\text { Regression Statistics }\\\begin{array}{lr}\hline \text { Multiple R } & 0.9659 \\\text { R Square } & 0.9331 \\\text { Adjusted R Square } & 0.9294 \\\text { Standard Error } & 0.0327 \\\text { Observations } & 58\end{array}\end{array}$
ANOVA
$\begin{array}{lrrrrr} & D f & S S & M S & F & \text { Significance F } \\\hline \text { Regression } & 3 & 0.8094 & 0.2698 & 251.1995 & 0.0000 \\\text { Residual } & 54 & 0.0580 & 0.0010 & & \\\text { Total } & 57 & 0.8675 & & &\end{array}$

$\begin{array}{lrrrr} & \text { Coefficients } & \text { Standard Error } & {t \text { Stat }} & {P \text {-value }} \\\hline \text { Intercept } & 0.5118 & 0.0136 & 37.4675 & 2.4904 \\\mathrm{X}_{1} & -0.0045 & 0.0034 & -1.3276 & 0.1898 \\\mathrm{X}_{2} & -0.2392 & 0.0123 & -19.3942 & 0.0000 \\\mathrm{X}_{3} & -0.0002 & 0.0123 & -0.0214 & 0.9829\end{array}$
-Referring to Instruction 13-10,what is the correct interpretation for the estimated coefficient for x₂?

A) Holding the effect of the other independent variables constant,the estimated mean difference in costs between parking on campus,and parking outside of the CBD and off campus is $0.24 per hour.
B) Holding the effect of the other independent variables constant,the estimated mean difference in costs between parking in the CBD and off campus,and parking on campus is $0.24 per hour.
C) Holding the effect of the other independent variables constant,the estimated mean difference in costs between parking in the CBD and off campus,and parking either outside of the CBD and off campus or on campus is $0.24 per hour.
D) Holding the effect of the other independent variables constant,the estimated mean difference in costs between parking in the CBD and off campus,and parking outside of the CBD and off campus is $0.24 per hour.