The following data show 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. Assuming that the sample correlation coefficient between Demand and = exp(26.3660 - 3.2577 ln(Price) + (0.2071)²/2) is 0.956, what is the percentage of variations in Demand explained by the log-log regression model? A) 98.52% B) 98.50% C) 91.39% D) 97.93%

Question

Quizplus · Accepted Answer

The Answer of The following data show 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. Assuming that the sample correlation coefficient between Demand and = exp(26.3660 - 3.2577 ln(Price) + (0.2071)²/2) is 0.956, what is the percentage of variations in Demand explained by the log-log regression model? A) 98.52% B) 98.50% C) 91.39% D) 97.93%

The Following Data Show the Demand for an Airline Ticket