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Exhibit 16

Question 11

Multiple Choice

Exhibit 16.5.The following data shows the demand for an airline ticket dependent on the price of this ticket. 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 = β<sub>0</sub> + β<sub>1</sub>Price + β<sub>2</sub>Price<sup>2</sup> + β<sub>3</sub>Price<sup>3</sup> + ε and ln(Demand) = β<sub>0</sub> + β<sub>1</sub>ln(Price) + ε,the following regression results are available: Refer to Exhibit 16.5.What does the slope of the obtained regression equation signify? A) For every 1% increase in the price,the predicted demand declines by approximately 3.2577%. B) For every 1% increase in the demand,the expected price increases by approximately 3.2577%. C) For every 1% increase in the demand,the expected price decreases by approximately 3.2577%. D) For every 1% increase in the price,the predicted demand increases by approximately 3.2577%. 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: 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 = β<sub>0</sub> + β<sub>1</sub>Price + β<sub>2</sub>Price<sup>2</sup> + β<sub>3</sub>Price<sup>3</sup> + ε and ln(Demand) = β<sub>0</sub> + β<sub>1</sub>ln(Price) + ε,the following regression results are available: Refer to Exhibit 16.5.What does the slope of the obtained regression equation signify? A) For every 1% increase in the price,the predicted demand declines by approximately 3.2577%. B) For every 1% increase in the demand,the expected price increases by approximately 3.2577%. C) For every 1% increase in the demand,the expected price decreases by approximately 3.2577%. D) For every 1% increase in the price,the predicted demand increases by approximately 3.2577%. Refer to Exhibit 16.5.What does the slope of the obtained regression equation 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 = β<sub>0</sub> + β<sub>1</sub>Price + β<sub>2</sub>Price<sup>2</sup> + β<sub>3</sub>Price<sup>3</sup> + ε and ln(Demand) = β<sub>0</sub> + β<sub>1</sub>ln(Price) + ε,the following regression results are available: Refer to Exhibit 16.5.What does the slope of the obtained regression equation signify? A) For every 1% increase in the price,the predicted demand declines by approximately 3.2577%. B) For every 1% increase in the demand,the expected price increases by approximately 3.2577%. C) For every 1% increase in the demand,the expected price decreases by approximately 3.2577%. D) For every 1% increase in the price,the predicted demand increases by approximately 3.2577%. signify?


A) For every 1% increase in the price,the predicted demand declines by approximately 3.2577%.
B) For every 1% increase in the demand,the expected price increases by approximately 3.2577%.
C) For every 1% increase in the demand,the expected price decreases by approximately 3.2577%.
D) For every 1% increase in the price,the predicted demand increases by approximately 3.2577%.

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