What is the value of the coefficient of determination

Assignment Help Basic Statistics
Reference no: EM13759719

In early 2003, the Glasure Transportation Authority, a public agency responsible forserving the commuter rail transportation needs of a large city, was faced with rising operating deficits on itssystem. Also, because of a fiscal austerity program at both the federal and state levels, the hope of receivingadditional subsidy was slim.

The board of directors of GTA suggested that because it has been over five yearssince the last basic fare increase, a fare increase from the current level of $1 to a new level of $1.50 should beconsidered. Accordingly, the board ordered the manager to conduct a study of the likely impact of this proposed farhike.

You, the system manager, have collected data on important variables thought tohave a significant impact on the demand for riders on the Glasure Transportation Authority (UTA). Thesedata have been collected over the past 24 years and include the following variables:

1. Price per ride (in cents) -- This variable is designated P. Price is expected tohave a negative impact on the demand for riders on the system.

2. Population in 1,000s in the metropolitan area serviced by GTA --It is expectedthat this variable has a positive impact on the demand for rides on the system. This variable is designated T.

3. Disposable per capita income -- This variable was initially thought to have apositive impact on the demand for rides on GTA. This variable is designated I.

4. Parking rate per hour in the downtown area (in cents) -- This variable is expectedto have a positive impact on the demand for riders on GTA. It is designated H.

5. Weekly riders in 1,000s. It is designated Y.

You have decided to perform a multiple regression on the data to determine theimpact of the rate increase. Based on the demand analysis you learned in chapter 5, determine first thedependent variable for the estimating demand equation.

Questions:

1. Write the estimated demand model for the data given above (use a 3- decimal points for the estimated coefficients.

2. Provide an economic interpretation for each of the coefficients in the estimateddemand equation you have computed.

3. What is the value of the coefficient of determination? How would you interpretthis result?

4. Calculate the price elasticity using 2012 data. Explain the estimatedcoefficient of the price elasticity you just computed.

5. Calculate the income elasticity using 2012 data. Explain the estimatedcoefficient of the income elasticity you

Reference no: EM13759719

Questions Cloud

Solve the dilemma using kant''s ethics : Solve the dilemma using Kant's ethics (Categorical Imperative). Solve the dilemma using any other method we have discussed to date (with which you agree.)
Management perspective and an employee perspective : Explain the difference between a "management perspective" and an "employee perspective, and discuss your level of comfort with taking on the role of a management perspective.
Between innovative and explicative entrepreneurship : What is the difference between innovative and explicative entrepreneurship? Identify the basic US securities laws that govern issuing an exchange of securities. What types of deals are most appropriate for Venture Capitalists? How is the business pla..
Customer exiting the check-in counter : The supervisor at the American airline check-in counter observes the following process characteristics: the average amount of a passenger spends on check-in is 25 minutes from start to end; there is, on average, one customer exiting the check-in coun..
What is the value of the coefficient of determination : Provide an economic interpretation for each of the coefficients in the estimateddemand equation you have computed - what is the value of the coefficient of determination? How would you interpretthis result?
Agility and flexibility-reliability and cost : Agility and flexibility: The ability to rapidly provision and re-provision the technological infrastructure resources you need. Cost: Fine-grained pricing of computing resources based on usage and needs. Fewer IT skills needed for implementation. Sca..
Write a paper explaining business uses of cloud computing : Write a paper explaining the business uses of cloud computing and Web 2.0. Your paper should be 3-5 pages in length and explain the business uses of each
Business-nonprofit group : You are the lead human-computer interaction (HCI) engineer on a major design project for an organization of your choice. Employees or customers will use this new system and user interface (UI) design to perform data entry for the organization.
Which led to being convicted of insider trading-unethical : Regarding Martha Stewart and her crime of Insider Trading. Her actions of "avoiding a loss" were deemed illegal. Were these actions, which led to being convicted of Insider Trading, also unethical?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd