3 Analysis questions (19 points total) Formulas: Total Cost = Distance*Travel Cost*2; New rate = Old rate - (Slope * Fee) 1. The city of Corvallis wants to evaluate the impact of charging for bus service (currently free) on ridership. It randomly chooses a subset of its routes to set a fare of $1.00, while the remaining routes continue with the existing free service. The following table shows mean annual ridership for the two sets of routes the year before and the year after the new fare is implemented. Routes Ridership before New Ridership after New Fare (rides Fare (rides) $0 Fare 25,000 19,000 $1 Fare 22,000 15,000 a. Calculate the impact of the increase in fare using the before-and-after method. 2 pts. b. Calculate the impact of the increase in fare using the simple difference method 2 pts. c. Calculate the impact of the peak-load pricing system using the difference in differences method 2 pts. d. Which approach would you choose to evaluate the impact of the program and why. 1 pts