1)Use the following information to estimate a travel cost model. The travel cost
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Question
1)Use the following information to estimate a travel cost model. The travel cost regression equation is shown at the bottom of the tables. Let the visitation fee be $20. Calculate the number of visitors. Show your work.
This table gives the visitation rates from, and population in, each zone.
Zone
Total Visits/Year
Zone Population
Visits/1000
0
400
1000
400
1
500
2000
250
2
600
4000
150
3
600
8000
75
Beyond 3
0
Total Visits
2100
This table gives the travel costs. Assume that travel time is worth $10.00 per hour. Assume that the estimated visitation regression is:
Visits/1,000 = 374 - 3.899*Travel Cost
Zone
Round Trip
Travel Distance
(miles)
Round Trip
Travel Time
(minutes)
Distance times Cost/Mile ($.30)
Travel Time times Cost/Minute ($?)
Total Travel Cost/Trip
Total Travel Cost/Trip
+$20 fee
Visits/
1,000
Total
visits
0
0
0
0
0
1
40
60
2
80
120
3
160
240
Zone
Total Visits/Year
Zone Population
Visits/1000
0
400
1000
400
1
500
2000
250
2
600
4000
150
3
600
8000
75
Beyond 3
0
Total Visits
2100
Explanation / Answer
Zone Round trip in miles Round trip in minutes Distance time cost/mile Travel time cost/mile Total travel cost/trip Total travel cost/trip + $20 Visits/1000 Population Total visits 0 0 0 0 0 $0 $20 296 1000 296 1 40 60 0.3 0.2 $12 $32 249 2000 498 2 80 120 0.3 0.2 $24 $44 202 4000 810 3 120 240 0.3 0.15 $36 $56 156 8000 1245
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