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Exhibit 16

Question 49

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.Using the log-log model,what is the predicted demand when the price is $200? A) 10874.92 B) 9201.45 C) 7849.25 D) 12499.98 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.Using the log-log model,what is the predicted demand when the price is $200? A) 10874.92 B) 9201.45 C) 7849.25 D) 12499.98 Refer to Exhibit 16.5.Using the log-log model,what is the predicted demand when the price is $200?


A) 10874.92
B) 9201.45
C) 7849.25
D) 12499.98

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