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Economics Group Assignment Solution.......................................

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Question;Group Assignment 1YEAR198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012Y120011901195111011051115113010951090108710801020101010101005995930915920940950910930933940948955P151515252525253030303040404040407575757575100100100100100100T180017901780177817501740172517521720170517101700169516951690163016401635163016201615160515901595159016001610I290031003200325032753290410043004400460048155285566558005900591563256500661268837005723475007600780080008100H50506060607075757580808085100105105105110125130150155165175175190200In early 2003, the Glasure Transportation Authority, a public agency responsible for serving the commuter railtransportation needs of a large city, was faced with rising operating deficits on its system. Also, because of a fiscalausterity 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 boardordered 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 impacton the demand for riders on the Glasure Transportation Authority (UTA). These data have been collectedover 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 impacton 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 positiveimpact 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 demandfor 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 impacton 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 variablefor the estimating demand equation.Questions:1. Write the estimated demand model for the data given above (use a 3decimal points for the estimated coefficients.2. Provide an economic interpretation for each of the coefficients in the estimated demand equation you havecomputed.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 justcomputed.5. Calculate the income elasticity using 2012 data. Explain the estimated coefficient of the income elasticityyouINSTRUCTION FOR SUBMISSIONAll the answers must be typed in Word. When answering the question, give the questionnumber and then properly give the answer.On the word document, write the group number and the names of only those who actuallycontributed to the assignment. I would like to emphasize that under any circumstance, donot put a non-contributing member's name on the documents. If caught, I will give zeroon the assignment in question.Only one person must submit both the Excel file containing the data and regressionoutput and the Word file containing only the answers. I do not want to search throughyour answers.

 

Paper#56124 | Written in 18-Jul-2015

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