Demand estimation using linear regression Y X1 X2 X3 X4 Number of Monthly Price per Population City weekly income of week of city Average parking rates per riders riders month 1 2 3 4 56 192,000 $15 1,800,000 $5,800 $50 190,400 $15 1,790,000 $6,200 $50 191,200 $15 1,780,000 $6,400 $60 177,600 $25 1,778,000 $6,500 $60 176,800 $25 1,750,000 $6,550 $60 6 178,400 $25 1,740,000 $6,580 $70 7 180,800 $25 1,725,000 $8,200 $75 8 175,200 $30 1,725,000 $8,600 $75 9 174,400 $30 1,720,000 $8,800 $75 10 173,920 $30 1,705,000 $9,200 $80 11 172,800 $30 1,710,000 $9,630 $80 12 163,200 $40 1,700,000 $10,570 $80 13 161,600 $40 1,695,000 $11,330 $85 14 161,600 $40 1,695,000 $11,600 $100 15 160,800 $40 1,690,000 $11,800 $105 16 159,200 $40 1,630,000 $11,830 $105 17 148,800 $65 1,640,000 $12,650 $105 18 115,696 $102 1,635,000 $13,000 $110 19 147,200 $75 1,630,000 $13,224 $125 20 150,400 $75 1,620,000 $13,766 $130 21 152,000 $75 1,615,000 $14,010 $150 22 136,000 $80 1,605,000 $14,468 $155 23 126,240 $86 1,590,000 $15,000 $165 24 123,888 $98 1,595,000 $15,200 $175 25 126,080 $87 1,590,000 $15,600 $175 22 26 151,680 $77 1,600,000 $16,000 $190 27 152,800 $63 1,610,000 $16,200 $200
Demand estimation using linear regression Y X1 X2 X3 X4 Number of Monthly Price per Population City weekly income of week of city Average parking rates per riders riders month 1 2 3 4 56 192,000 $15 1,800,000 $5,800 $50 190,400 $15 1,790,000 $6,200 $50 191,200 $15 1,780,000 $6,400 $60 177,600 $25 1,778,000 $6,500 $60 176,800 $25 1,750,000 $6,550 $60 6 178,400 $25 1,740,000 $6,580 $70 7 180,800 $25 1,725,000 $8,200 $75 8 175,200 $30 1,725,000 $8,600 $75 9 174,400 $30 1,720,000 $8,800 $75 10 173,920 $30 1,705,000 $9,200 $80 11 172,800 $30 1,710,000 $9,630 $80 12 163,200 $40 1,700,000 $10,570 $80 13 161,600 $40 1,695,000 $11,330 $85 14 161,600 $40 1,695,000 $11,600 $100 15 160,800 $40 1,690,000 $11,800 $105 16 159,200 $40 1,630,000 $11,830 $105 17 148,800 $65 1,640,000 $12,650 $105 18 115,696 $102 1,635,000 $13,000 $110 19 147,200 $75 1,630,000 $13,224 $125 20 150,400 $75 1,620,000 $13,766 $130 21 152,000 $75 1,615,000 $14,010 $150 22 136,000 $80 1,605,000 $14,468 $155 23 126,240 $86 1,590,000 $15,000 $165 24 123,888 $98 1,595,000 $15,200 $175 25 126,080 $87 1,590,000 $15,600 $175 22 26 151,680 $77 1,600,000 $16,000 $190 27 152,800 $63 1,610,000 $16,200 $200
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
You are given information on the use of public transportation in the data set within the image.
- Number of weekly riders y -variable
Price per week (of using public transportation) x-variable- Population of city x-variable
- Monthly income of riders x variable
- Average parking rates per month x-variable
(a) Run a regression of the Number of weekly riders on Price per week, Population of city, Monthly income of riders, Average parking rates per month. Please copy and paste your regression results and do not submit your EXCEL worksheet.
(b) If the average parking rates increase by $1, what will be the change in the number of weekly riders? Will this change be a statistically significant change? Please explain.
(c) If the price per week (of using public transportation) increases by $1, what will be the change in the number of weekly riders? Will this change be a statistically significant change? Please explain.
Transcribed Image Text:Demand estimation using linear regression
Y
X1
X2
X3
X4
Number of
Monthly
Price per
Population
City
weekly
income of
week
of city
Average
parking
rates per
riders
riders
month
1 2 3 4
56
192,000
$15
1,800,000
$5,800
$50
190,400
$15
1,790,000 $6,200
$50
191,200
$15
1,780,000
$6,400
$60
177,600
$25
1,778,000
$6,500
$60
176,800
$25
1,750,000 $6,550
$60
6
178,400 $25
1,740,000 $6,580
$70
7
180,800
$25
1,725,000 $8,200
$75
8
175,200 $30
1,725,000 $8,600
$75
9
174,400 $30
1,720,000 $8,800
$75
10
173,920
$30
1,705,000 $9,200
$80
11
172,800
$30
1,710,000 $9,630
$80
12
163,200
$40
1,700,000 $10,570
$80
13
161,600 $40
1,695,000 $11,330
$85
14
161,600 $40
1,695,000 $11,600
$100
15
160,800 $40
1,690,000 $11,800 $105
16
159,200 $40
1,630,000 $11,830
$105
17
148,800
$65
1,640,000 $12,650
$105
18
115,696 $102
1,635,000 $13,000
$110
19
147,200
$75
1,630,000 $13,224
$125
20
150,400
$75
1,620,000 $13,766
$130
21
152,000
$75
1,615,000 $14,010
$150
22
136,000
$80
1,605,000 $14,468
$155
23
126,240 $86
1,590,000 $15,000
$165
24
123,888
$98
1,595,000 $15,200
$175
25
126,080
$87
1,590,000 $15,600
$175
22
26
151,680 $77
1,600,000 $16,000
$190
27
152,800
$63
1,610,000 $16,200
$200
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