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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?
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