Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your assistant has estimated the following model for the demand for bus travels: ^BUSTRAVL = -2. 02e+04 + 1. 99e+04*GASPRICE + 1. 07e+03*1 LANDAREA -

image text in transcribed
Your assistant has estimated the following model for the demand for bus travels: ^BUSTRAVL = -2. 02e+04 + 1. 99e+04*GASPRICE + 1. 07e+03*1 LANDAREA - 1.20e+03*FARE (6. 68e+03) (6.78e+03) (428) (1.26e+03) n = 40, R-squared = 0.274 (standard errors in parentheses) Tasks: a. Use the model and estimate the demand for bus travels in a city with gasoline price of $1, bus fare of $0.90 and land area of 200 square miles. b. Provide the interpretation of the estimated parameters. c. Test the individual significance of the estimated parameters (use 5% significance level) and provide the economic interpretation of your results. For testing the significance, state clearly your hypotheses, the test statistic and its sampling distribution

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Mario F. Triola

11th Edition

321500245, 321500243, 978-0321500243

Students also viewed these Mathematics questions

Question

What do you think the natural cause of your problem is?

Answered: 1 week ago