Exhibit 16

question 67

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.Assuming that the sample correlation coefficient between Demand and is 0.956,what is the predicted demand for a price of $250 found by the model with better fit?

• A)4447.88
• B)3914.38
• C)4029.38
• D)5137.60

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Definitions:

Inferior Oblique

A muscle in the orbit of the eye that controls elevation of the eyeball and helps in movements such as looking upward.

Lateral Rectus

A muscle in the eye that controls lateral movement of the eyeball, moving it away from the midline.

Superior Oblique

A cranial nerve-controlled muscle in the eye that helps in rotating the eye downwards and outwards.

Superior Rectus

A muscle in the eye that is responsible for upward movement, helping to control the direction in which the eye looks.