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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 -
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
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