الأحد، 2 فبراير 2014

Quantitative assignment for MBA 2014 student limkokwing malaysia with answer - Early in 2008 the by mahmoud sami

Question 1
Early in 2008, the RangkaianPengangkutanIntegrasiDerasSdnBhd(RapidKL), a company responsible for serving the light rail transit (LRT) needs of a large Eastern city, was faced with rising operating deficits on its system. Also, because of a fiscal austerity program at both the federal and state levels, the hope of receiving additional subsidy support was slim.
The board of directors of RapidKL asked the system manager to explore alternatives to alleviate the financial plight of the system. The first suggestion made by the manager was to institute a major cutback in service. This cutback would result in no service after 7:00 P.M., no service on weekends, and a reduced schedule of service during the midday period Monday through Friday.


The board of RapidKL indicated that this alternative was not likely to be politically acceptable and could only be considered as a last resort. The board suggested that because it had been over five years since the last basic fare increase, a fare increase from the current level of RM1 to a new level of RM1.50 should be considered. Accordingly, the board ordered the manager to conduct a study of the likely impact of this proposed fare hike.

The system manager has collected data on important variables thought to have a significant impact on the demand for rides on RapidKL. These data have been collected over the past 27 years and include the following variables:
·         Price per ride (in cents) — This variable is designated P in Table 1. Price is expected to have a negative impact on the demand for rides on the system.

·         Population in the metropolitan area serviced by RapidKL— It is expected that this variable has a positive impact on the demand for rides on the system. This variable is designated T in Table 1. 
·         Disposable per capita income — This variable was initially thought to have a positive impact on the demand for rides on RapidKL. This variable is designated (I) in Table 1.
·         Parking rate per hour in the downtown area (in cents) — This variable is expected to have a positive impact on demand for rides on the RapidKL. It is designated H in Table 1. 

Year
Weekly Riders (Y)
(x1,000)
Price
(P) per Ride (Cents)
Population (T) (x1,000)
Income (I)
Parking Rate (H) (Cents)
1981
1,200
15
1,800
2,900
50
1982
1,190
15
1,790
3,100
50
1983
1,195
15
1,780
3,200
60
1984
1,110
25
1,778
3,250
60
1985
1,105
25
1,750
3,275
60
1986
1,115
25
1,740
3,290
70
1987
1,130
25
1,725
4,100
75
1988
1,095
30
1,725
4,300
75
1989
1,090
30
1,720
4,400
75
1990
1,087
30
1,705
4,600
80
1991
1,080
30
1,710
4,815
80
1992
1,020
40
1,700
5,285
80
1993
1,010
40
1,695
5,665
85
1994
1,010
40
1,695
5,800
100
1995
1,005
40
1,690
5,900
105
1996
995
40
1,630
5,915
105
1997
930
75
1,640
6,325
105
1998
915
75
1,635
6,500
110
1999
920
75
1,630
6,612
125
2000
940
75
1,620
6,883
130
2001
950
75
1,615
7,005
150
2002
910
100
1,605
7,234
155
2003
930
100
1,590
7,500
165
2004
933
100
1,595
7,600
175
2005
940
100
1,590
7,800
175
2006
948
100
1,600
8,000
190
2007
955
100
1,610
8,100
200

a     )    What is the dependent variable in this demand study?
   Answer: the dependent variable in this demand study is weekly riders

b      )    What are the independent variables?
      Answer: the independent variable is price, population, income and parking rate

c        )     What are the expected signs of the variables thought to affect transit      ridership on RapidKL?
d        )     Answer: I think Parking rate , income, population = positive impact . Price is    negative impact


e    )    Using a multiple regression program available on a computer to which you have access, estimate the coefficients of the demand model for the data given in Table 1. Results of the multiple regression is in Table 2
f)      Interpret each of the coefficients in the regression equation you have in Table 2. 

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