Given the utility expression:
UK= AK - 0.05 Ta - 0.04Tw - 0.02 Tr - 0.01 C
a) Apply the logit model to calculate the division of usage between the automobile mode (AK = -0.005) and a mass transit mode (AK = -0.05). Use the data given in the table below for your analysis.
b) Estimate the patronage shift that would result from doubling the bus out-of-pocket cost.
[Solution Shown Below]
Part A is solved by substituting the given values into the utility function and solving the logit model equation. The calculations and results for part A are shown in the table below.
Part B is essentially identical to part A except for the change in the out-of-pocket cost for bus travel. The preliminary calculations for part B are shown in the table below as well, while the final calculations are located below the table.
A significant number of bus riders are predicted to shift to the automobile.
The increase in automobile use will be: