EC410-1008

EC410-1008



EC410-1008

Part 1

Model

The general model is as follows:

Where,

Cc = Commuter's Choice, C = Number of commuters

P = Number of cars on the highway that will slow down the speed and increase the travel time

a = Commuter's selection will be driving through car

ß = Commuter's selection will be train

This defines that if the number of cars on highway is less than the commuters will choose driving, while if the number of cars on highway is high than commuters can choose travelling by train to minimize their travelling time.

Average Travel Time

Y = a(x1) + ß(x2)

Where,

Y = average travel time

a = Time encountered by commuters traveling by train; time = distance/speed

ß = Time encountered by commuters travelling by road; time = distance/speed

x1 = percentage of commuters travelling by train, x2 = percentage of commuters travelling by road

The average travel time (across both modes of transport) be if 50% more commuters took the train instead of driving will be:

Y = a(75%) + ß(50%)

Y = 0.75a + 0.5ß

The average travel time will decrease if more commuters travel by train because train will take equal time as well as time will decrease due to less number of cars on highway.

Empirics

The Sam sportswriter's make statement stating that: Five years ago, the Shelbyville Amoebas went almost undefeated and in this season they are not performing well in the field. The wrong in Sam's reasoning is that he has taken a high difference in the years that is five years. There can be major difference in five years such as change in players, retirement of good experience players, induction of new junior players, change in management team or coach etc.Besides this, Sam is directly criticizing the skills of the players of Shelbyville Amoebas. Sam should have explained the reasons of the low performance rather ...