Determine the share (proportion) of person trips by each of two modes (Private auto and mass transit) using the multinomial logit model and given and following information
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Determine the share (proportion) of person trips by each of two modes (Private auto and mass transit) using the multinomial logit model and given and following information
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- The model initial setup is• The number of vacancies posted in the economy during a particular month is v = 100.• There were initially u = 225 unemployed workers at the beginning of the month.• Suppose that the average wage is 0.6 relative to their productivity. Unemployed workersreceive benefits that are half the wage, i.e., b = 0.3 relative to productivity.• Suppose that the number of matches between firms and workers are given by thefollowing matching functionsM = Au^0.5v^0.5• Suppose that 45 workers were able to find a job by the end of the month.Answer the following questions.a) What is the monthly job finding rate?b) What is the probability that an average vacancy is filled in a month?c) What is the job creation cost, k?d) What is the value of A?e) Explain how introducing a searching cost to this model would affect the queue length,the number of vacancy and unemployment rate, and wage.In the Markowitz portfolio optimization model defined in equations (8.10) through (8.19) in the text, the decision variables represent the percentage of the portfolio invested in each of the mutual funds. For example, FS = 0.25 in the solution means that 25% of the money in the portfolio is invested in the foreign stock mutual fund. It is possible to define the decision variables to represent the actual dollar amount invested in each mutual fund or stock. Redefine the decision variables so that now each variable represents the dollar amount invested in the mutual fund. Assume an investor has $50,000 to invest and wants to minimize the variance of his or her portfolio subject to a constraint that the portfolio returns a minimum of 10%. (a) Reformulate the model given by (8.10) through (8.19) based on the new definition of the decision variables. min ((R1 − R)2 + (R2 − R)2 + (R3 − R)2 + (R4 − R)2 + (R5 − R)2) s.t. R1 =…Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $172,000. Variable processing costs are estimated to be $5 per book. The publisher plans to sell single-user access to the book for $42. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 − 6p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). $ (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) $ (c) Use a data table that varies…
- TRUE OR FALSE. A model with heterosdasticity problem most likely has insignificant parameter estimates.If a Winters' model for new car dealer sales, comes up with four seasonal indices with values of Q1 = 0.95, Q2 = 1.04, Q3 = 1.05, and Q4 = 0.96, the following can be interpreted: Multiple Choice Q1 sales are lower because of Q2 sales. Q1 sales are usually about 5 percent below an average quarter. Q1 sales are usually about 5 percent above an average quarter. Q1 sales are higher because of Q2 sales.In general, what is true about the relationship between the Sum of Squared Residuals in the restricted and unrestricted model? a. SSRr = R-squared * SSRur b. SSRr < SSRur c. SSRr > SSRur d. SSRr = SSRur
- The demand equation for a product for a product brand of mackerel is given by the equation Qx=50-7Px+0.002I+12Py Where Qx=monthly consumption per family in cartons Px=price per carton of makerel=GHC 2.00 I=median annual family income=GHC20,000 Py=price per carton of competing brand of mackerel=2.5 Required: i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons). ii.what is the relationship between Good x and Good y? iii.what is the nature of Good x ? iv.Suppose the median annual family income increases to GHC40,000,What will be your new consumptino for Good x? v.Suppose that the price per carton of competing brand increases GHC3.00, What will be your new consumption for Good x?Suppose that the following binary dependent models. The model is based on the driving test of the 400 randomly selected driver’s license applicants. Y=1 if passed the test, or 0 otherwise, and X1 is years of experiences, X2 is the years of educations. Logit: P(Y=1/X) = F(0.563+ 0.040X1+ 0.057X2) What are the probabilities of passing the test for a person with 10 years of experiences and 10 years of educations in each model?Using the fixed-time period inventory model, and given an average daily demand of 287 units , 4 days between inventory reviews, 5 days for lead time, 141 units of inventory on hand, a "z" of 1.96, and a standard deviation of demand over the review and lead time of 2 units, which of the following is the order quantity?
- Write down the two decision variables of a household or the two goods (including both market and non market goods) in one period RBC model.Agnes, a General Manager in XXX Company, estimated a multiplicative demand function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: (SEE IMAGE) Write down the estimated demand equation Interpret the coefficients and R2 value Describe any three managerial decisions that can be applied by the manager from the estimated demand functionQ2 The manufacturer of a low-sugar bottled juice estimated the following demand equation for its product using data from 25 retail stores around Dover city for the month of November: Q=-2000-15 Pje+ 8.4Px + 0.51 + 0.4A (220) (5.0) (5.6) (0.2) (0.16) R²=0.57 n=25 F = 6.83 Assume the following values for the independent variables: Standard error 1 Q denotes quantity sold per month Pje (denotes price of the bottled juice) = 240 (in cents) P. (denotes price of leading competitor's product) - 300 (in cents) I (denotes per capita income of the standard residential district in which the retail store is located) = 4000 (in dollars) A (denotes monthly advertising expenditure) = 7700 (in dollars) Using this information, answer the following questions: a. Compute elasticities for each variable.. b. Do you think that this firm should cut its price to increase its market share?
