Exhibit 16.5.The following data shows the demand for an airline ticket dependent on the price of this ticket. For the assumed cubic and log-log regression models,Demand = β₀ + β₁Price + β₂Price² + β₃Price³ + ε and ln(Demand)= β₀ + β₁ln(Price)+ ε,the following regression results are available: Refer to Exhibit 16.5.Using the cubic model,what is the predicted demand when the price is $200? A)14378.72 B)9201.45 C)10764.66 D)12499.98

Question

Quizplus · Accepted Answer

The Answer of Exhibit 16.5.The following data shows the demand for an airline ticket dependent on the price of this ticket. For the assumed cubic and log-log regression models,Demand = β₀ + β₁Price + β₂Price² + β₃Price³ + ε and ln(Demand)= β₀ + β₁ln(Price)+ ε,the following regression results are available: Refer to Exhibit 16.5.Using the cubic model,what is the predicted demand when the price is $200? A)14378.72 B)9201.45 C)10764.66 D)12499.98