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n early 2003, the Glasure Transportation Authority, a public agency responsible for serving..............

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Question;Group;Assignment 1;YEAR;Y;P;T;I;H;1986;1200;15;1800;2900;50;1987;1190;15;1790;3100;50;1988;1195;15;1780;3200;60;1989;1110;25;1778;3250;60;1990;1105;25;1750;3275;60;1991;1115;25;1740;3290;70;1992;1130;25;1725;4100;75;1993;1095;30;1752;4300;75;1994;1090;30;1720;4400;75;1995;1087;30;1705;4600;80;1996;1080;30;1710;4815;80;1997;1020;40;1700;5285;80;1998;1010;40;1695;5665;85;1999;1010;40;1695;5800;100;2000;1005;40;1690;5900;105;2001;995;40;1630;5915;105;2002;930;75;1640;6325;105;2003;915;75;1635;6500;110;2004;920;75;1630;6612;125;2005;940;75;1620;6883;130;2006;950;75;1615;7005;150;2007;910;100;1605;7234;155;2008;930;100;1590;7500;165;2009;933;100;1595;7600;175;2010;940;100;1590;7800;175;2011;948;100;1600;8000;190;2012;955;100;1610;8100;200;In early 2003, the Glasure;Transportation Authority, a public agency responsible for serving the commuter rail;transportation needs of a large city, was faced with rising operating deficits;on its system. Also, because of a fiscal austerity program at both the federal;and state levels, the hope of receiving additional subsidy was slim.;The board of directors of GTA;suggested that because it has been over five years since the last basic fare;increase, a fare increase from the current level of $1 to a new level of $1.50;should be considered. Accordingly, the board ordered the manager to conduct a;study of the likely impact of this proposed far hike.;You, the system manager, have;collected data on important variables thought to have a significant impact on;the demand for riders on the Glasure Transportation Authority (UTA). These data;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 to have 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 expected that 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 a positive 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 expected to 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 the impact of the rate increase.;Based on the demand analysis you;learned in chapter 5, determine first the dependent 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 estimated demand equation you have;computed.;3. What is the value of the;coefficient of determination? How would you interpret this result?;4. Calculate the price elasticity;using 2012 data. Explain the estimated coefficient of the price elasticity you;just computed.;5. Calculate the income elasticity;using 2012 data. Explain the estimated coefficient of the income elasticity you;INSTRUCTION;FOR SUBMISSION;All the answers must be typed in;Word. When answering the question, give the question number and then properly;give the answer.;On the word document, write the group;number and the names of only those who actually contributed to the assignment.;I would like to emphasize that under any circumstance, do not put a;non-contributing member's name on the documents. If caught, I will give zero on;the assignment in question.;Only one person must submit both the;Excel file containing the data and regression output and the Word file;containing only the answers. I do not want to search through your answers.;All;the answers must be typed in Word. When answering the question, give the;question number and then properly;give the answer.;On;the word document, write the group number and the names of those who actually;contributed to the assignmen would;like to emphasize;that;under any circumstance, do not put a non-contributing member's name on the;documents. If caught, I will giv on;the assignment in question.;Only;one person submit both the Excel file containing the data and output and the;Word file containing the answers.

 

Paper#53551 | Written in 18-Jul-2015

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