The Following Data Show the Demand for an Airline Ticket

question 1

Multiple Choice

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. Which of the following is the percentage of variations in ln(Demand) explained by the log-log regression equation?

• A) 98.52%
• B) 98.50%
• C) 91.39%
• D) 97.93%

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