Please answer ALL PARTS of this question PRECISELY!!! 2. Hilton (1980) reports t

Question

Please answer ALL PARTS of this question PRECISELY!!!
2. Hilton (1980) reports the following empirical demand model that Amtrak, the nation's passenger rail service, used in forecasting service changes. The model is based upon a sample of 71 observations of annual ridership changes on 39 routes served between 1974-5 and 1975-6: R% (-5.73) (4.58) (2.10) (51.2) R: 0.978 where R% is the annual percentage change in ridership on a route: F% is the annual percentage change in frequency [(train mile days)/(route miles)] 365 on a route: E is the absolute change in the percentage of train days having new equipment: T% is the annual percentage change of Amtrak on-time performance

Explanation / Answer

A. Yes, all the estimates are consistent with the intuitive understanding. All the signs of variables are consistent, Since increase of performance and population will lead to increase in passengers. Energy shortage will have negative impact.

B. Yes, the variable 'T' in the equation is significant that proves that good performance in service frequency increases passengers.

C. Yes, newer the equipment, better the increase of passengers since its sign is +ve

D. Energy shortage is reducing the passengers since its sign is -ve

E. Maybe number of sample chosen is not large enough and does not represent the diverse sampling.

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