Exhibit 16

question 66

Multiple Choice

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

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Definitions:

Ethical Soundness

The degree to which actions or policies are morally upright and adhere to accepted ethical standards.

Alternative Solutions

Different options or strategies considered in problem-solving or decision-making processes to achieve a desired outcome.

Evaluating Criteria

Standards or benchmarks used to judge the value, importance, or quality of something under consideration.

Classical Decision Making

An approach that assumes decision-makers are fully rational and make choices that maximize value or utility.