the '.chair' replacing the '$'
That's it exactly.
There are three built-in variable types ( integer, float, string ) and user defined ones, such as chair. A variable's type is determined when it is explicitly declared, with Global or Local, or whenever the compiler first sees the variable in your code.
So if the variable room, of type chair, has been declared or already appeared earlier in the code you can simply say
room = New chair
And as long as I'm in lecture mode, the return type of a function is determined in the same way:
Function f#( ) ; will return a float
Function g.chair( ) ; will return a chair, whatever that is.