Suppose that to examine the demand for TriMet bus rides (BR_t) in the Portland region, we constructed the following aggregate demand regression model:

= ₀+ ₁ + ₂+ ₃+ ₄_ + ₁ +

Where BR_trepresents thousands of bus rides demanded in a particular month t, Price is the fare for bus rides ($), Income is the average income level (thousands $), Population is the current population (thousands), Price_Uber is the price of an equivalent Uber ride ($) and Pandemic is a dummy variable (0 or 1) representing whether or not there was a pandemic related stay at home order in the state during that month.

1. Assume that the R² of the estimated model is 0.85, interpret this in a sentence.
2. Assume that ₁= -3, ₂= 5, ₃ = 0.5, ₄= 0.05, ₁ = -10 are the estimated coefficients for this model. We also have calculated some dataset averages: average BR is 300, average price of a bus ride is $3, average Income is 45 (thousand $), average price of an equivalent Uber ride is $10 and average Population is 850 (thousand) in this dataset.