A new office park is considering to start an express bus service for workers. A survey of office park commuters is conducted and found that mode choice is affected by out-of-pocket costs (OPC) and total travel time (TTT) where the mode utility is expressed by the function Um ao -0.47OPCm - 0.22TTT
A new office park is considering to start an express bus service for workers. A survey of office park commuters is conducted and found that mode choice is affected by out-of-pocket costs (OPC) and total travel time (TTT) where the mode utility is expressed by the function Um ao -0.47OPCm - 0.22TTT
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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PLEASE SHOW SOLUTIONS AND PLEASE DO THIS TYPEWRITTEN FOR UPVOTE
![Use 2 decimal places in your final
3.
A new office park is considering to start an express bus service for workers. A survey of office park commuters is conducted and found that
mode choice is affected by out-of-pocket costs (OPC) and total travel time (TTT) where the mode utility is expressed by the function
Um ao 0.47OPCm - 0.22TTT
Mode
Automobile
Bus
ao
0.73
0 0.75 18
OPC TTT
10.5
---
a. What is the expected percentage of bus riders based on the parameters given?
What would the bus mode share be if the bus fare is reduced to zero?
b.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76043b90-1f33-46dd-a5c8-708bcf994f14%2F9da73e4e-9b53-4198-a945-cbb295117c31%2Fq0pgyu_processed.png&w=3840&q=75)
Transcribed Image Text:Use 2 decimal places in your final
3.
A new office park is considering to start an express bus service for workers. A survey of office park commuters is conducted and found that
mode choice is affected by out-of-pocket costs (OPC) and total travel time (TTT) where the mode utility is expressed by the function
Um ao 0.47OPCm - 0.22TTT
Mode
Automobile
Bus
ao
0.73
0 0.75 18
OPC TTT
10.5
---
a. What is the expected percentage of bus riders based on the parameters given?
What would the bus mode share be if the bus fare is reduced to zero?
b.
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