Determine the mode choice (personal vehicle or bus system) for the following regression model: Utility Function: Umode – (8.333 x 10-4)*(Access time in sec) – (6.667 x 10-4)*(Wait Time in sec) – (5.00 x 10-4)*(Riding time in sec) – (1.40)*(Cost, $) PARAMETERPERSONAL VEHICLECITY BUS SYSTEMMODE CONSTANT-0.01-0.07ACCESS TIME (SECS)300600WAITING TIME (SECS)0900RIDING TIME (SECS)1,5006,000COST (DOLLARS)$1.50$1.00

The utility is the measurement of the level of satisfaction one receives from consuming a good or…

Answered: Determine the mode choice (personal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Determine the mode choice (personal vehicle or bus system) for the following regression model:

Utility Function: U_mode – (8.333 x 10^-4)*(Access time in sec) – (6.667 x 10^-4)*(Wait Time in sec) – (5.00 x 10^-4)*(Riding time in sec) – (1.40)*(Cost, $)

PARAMETER	PERSONAL VEHICLE	CITY BUS SYSTEM
MODE CONSTANT	-0.01	-0.07
ACCESS TIME (SECS)	300	600
WAITING TIME (SECS)	0	900
RIDING TIME (SECS)	1,500	6,000
COST (DOLLARS)	$1.50	$1.00

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