As a business statistics project, a student examined the factors that determine parking meter rates throughout the campus and downtown area. The campus is a group of buildings located in the center of downtown, with an open central quadrangle. Data were collected for the price of parking per hour and the number of blocks to the quadrangle. In addition, two dummy variables were coded to indicate the location of the parking meter (See below). The population regression model hypothesized is

Yi= 0+ 1x1i+ 2x2i+ 3x3i+ ei

where

Y is the price per hour

x1is a numerical variable = the number of blocks to the quadrangle

(Note that if x1is less than 2, then the meter is on campus; if x1is less than 3, then the meter is downtown)

x2is a dummy variable = 1 if inside downtown and off campus, 0 otherwise

x3is a dummy variable = 1 if outside downtown and off campus, 0 otherwise

The following Excel results are obtained.

Regression Statistics

Multiple R 9.9659

R Square 0.9331

Adjusted R Square 0.9294

Standard Erro 0.0327

Observations 58

ANOVA df SS MS F Signif F

Regression 3 0.8094 0.2698 251.199 1.0964E-31

Residual 54 0.0580 0.0010

Total 57 0.8675

Coeff StdError t Stat P-value

Intercept 0.5118 0.0136 37.4675 2.4904

X1 -0.0045 0.0034 -1.3275 0.1898

X2 -0.2392 0.0123 -19.3942 5.3581E-26

X3 -0.0002 0.0123 -0.0214 0.9829

Referring to the tables, predict the meter rate per hour if one parks outside of downtown and off campus, 3 blocks from the quad.

Select one:

a.$-0.0139

b.$0.2589

c.$0.2604

d.$0.4981