1. Attach the computer regression output and demand equation
   

.DEMAND ESTIMATION Early in 1993. the Southeastern Transportation Authority (STA), a public agency responsible for serving the commuter rail transportation needs of a large Eastern city, was faced with rising operating deficits on its system. Also, because of a fiscal aus- terity program at both the federal and state levels, the hope of receiving additional subsidy support was slim. The board of directors of STA asked the system manager to explore alternatives , to alleviate the financial plight of the sysrem. The first suggestion made by the man aget was to institute a major cutback in service. This cutback would result in no serv- ice after ?:00 ML, no service on weekends, and a reduced schedule of service during the midday period Menday through Friday. The board of STA indicated that this alternative was not likely to be politically acceptable and could only be considered ' as a last resort. The board suggested that because it had 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 fare hike. The system manager has collected data on important variables thought to have a - significant impact on the demand for rides on S'I'A. These data have been collected . over the past 24 years and include the following variables: 1. Price per ride (in centslThis variable is designated P in Table 1. Price is expected I to have a negative impact on the demand for rides on the system. 2. Population in the metropolitan area serviced by STAIt is expected that this vau-' able has a positive impact on the demand for rides on the system. This variable- is designated '1' in Table 1. 3. DiSposable per capita incointhThis variable was initially thought tojltavc a P05' itive impact on the demand for titles on STA. This variable is designated'._l m ['31th l 4. Parking rate per hour in the downtown area (in cents)~This variableiis CXPCCECd to have a positive impacr on demand for rides on the STA. It is designated H _ Table 1