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.What is the percentage of variations in ln(Demand)explained by the log-log regression equation? A)98.52% B)98.50% C)91.39% D)97.93%

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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.What is the percentage of variations in ln(Demand)explained by the log-log regression equation? A)98.52% B)98.50% C)91.39% D)97.93%