Ridership on the North Salem Independent Transit System is increasing. The city’s program evaluation office feels that the increase in the number of riders every day is due to the price of gasoline. Using data for the past 3 years, the evaluation office regresses daily ridership (Y) on the price of gasoline (in cents) for that day (X). It finds

Write a memo on the policy implications of a 50¢ increase in gasoline prices.

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y = Ŷ 212 + 187X Sb = 17.4 Sylx = 206² = .91