Your assistant has estimated the following model for the demand for bus travels: ^BUSTRAVL = -9.33e+03...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Your assistant has estimated the following model for the demand for bus travels: ^BUSTRAVL = -9.33e+03 +0.293* DENSITY + 2.59* LANDAREA + 1.38e+03*1_POP (3.24e+03) (0.0833) (3.47) (648) n = 40, R-squared = 0.778 (standard errors in parentheses) Tasks: 1. Use the model and estimate the demand for bus travels in a city with land area of 50 square miles, population of 0.5 million of inhabitants and density of 2 thousands of persons per square mile. 2. Provide the interpretation of the estimated parameters. 3. Test the individual significance of the estimated parameters (use 10% significance level) and provide the economic interpretation of your results. For testing the significance, state clearly your hypotheses, the test statistic and its sampling distribution. 4. Evaluate as well how well given model explains the demand for bus travels. Describe briefly the weaknesses of this model. Your assistant has estimated the following model for the demand for bus travels: ^BUSTRAVL = -9.33e+03 +0.293* DENSITY + 2.59* LANDAREA + 1.38e+03*1_POP (3.24e+03) (0.0833) (3.47) (648) n = 40, R-squared = 0.778 (standard errors in parentheses) Tasks: 1. Use the model and estimate the demand for bus travels in a city with land area of 50 square miles, population of 0.5 million of inhabitants and density of 2 thousands of persons per square mile. 2. Provide the interpretation of the estimated parameters. 3. Test the individual significance of the estimated parameters (use 10% significance level) and provide the economic interpretation of your results. For testing the significance, state clearly your hypotheses, the test statistic and its sampling distribution. 4. Evaluate as well how well given model explains the demand for bus travels. Describe briefly the weaknesses of this model.
Expert Answer:
Answer rating: 100% (QA)
1 The demand for bus travels in a city with land area of 50 square miles population of 05 million of ... View the full answer
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
Posted Date:
Students also viewed these accounting questions
-
On December 1, 2020, the HALL Company paid $30,000 for internet connection, which will be used from February 1, 2021. What type of adjusting entry is needed in this situation on December 31, 2020....
-
What can you conclude from these results?
-
What can you conclude about the price elasticity of demand in each of the following statements? a. "The pizza delivery business in this town is very competitive. I'd lose half my customers if I...
-
Which market segments are the most favorable for Hyundai card? Does the company do an effective job of targeting and reaching those segments? If so, How? If not, why not?
-
List some common non-refundable tax credits.
-
Which of the following bonds do you expect to be longer: (a) The BrO bond in BrO or in BrO 2 ; (b) The CH bond in CH 4 or the SiH bond in SiH 4 ?
-
Identify each of the following assets as a plant asset (P) or an intangible asset (I): 1. Franchises 2. Vehicles 3. Buildings 4. Furniture 5. Patents 6. Copyrights 7. Trademarks 8. Land improvements
-
You are promoting a rock concert in your area. Each member of your team will invest $10,000 of his or her hard-earned money in this venture. It is April 1 and the concert is scheduled for June 30....
-
A block cipher with encryption function e when used in OFB mode produces a keystream of pseudo- random blocks s1,s2.s3.... where s1=e(IV) and si+1-e(si). These blocks are then used as a stream cipher...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
How you can inspire and motivate others, foster collaboration, and positively influence those around you.
-
What is the director's role in building and supporting a diverse and inclusive community? Give examples of skills that you need in order to build and support a diverse and inclusive community in your...
-
4. Explain the following: a) Magnet Schools b) Charter Schools c) Returns to Education d) Direct Student Loans
-
What is the Leadership Framework that is discussed in the Visionary Director? What roles are represented in the framework? Describe each role in full. What side of the framework feels more familiar...
-
What are the implications of environmental degradation, climate change, and resource exploitation for social justice, particularly in terms of disproportionate impacts on vulnerable communities, and...
-
The final stages of a development , Why is delivery and post sales critical and what issues/risks should you address? Who is the team involved and what are their roles?
-
For each ordered pair, determine -6x+7y=2 7x-4y=6 a solution to the system of equations.
-
In Problems 718, write the augmented matrix of the given system of equations. f0.01x0.03y = 0.06 [0.13x + 0.10y = 0.20
-
An Associated Press article written by Rukmini Callimachi pointed out that Nike, the worlds largest maker of athletic shoes, has started to feature female models who are not the traditional rail-thin...
-
An article in the San Francisco Chronicle indicated that just 38% of drivers crossing the San Francisco Bay Areas seven state-owned bridges pay their tolls electronically, compared with rates nearing...
-
Freedom Hospital is in the midst of contract negotiations with its resident physicians. There has been a lot of discussion about the hospitals ability to pay and the way patients are charged. The...
-
Explain two different approaches to account for an investment tax credit for a capital asset.
-
What kinds of differences cause a company to report taxes at a rate different than the statutory rate?
-
Toker & have used me a State Masiname or ended 3 December 2010 They asked one of the audit staff to draft the audit report and he produced this: A roost semnation on a teer be to the amount and does...
Study smarter with the SolutionInn App