Question

A simple linear regression model is estimated for shopping-trip generation during a shopping-trip peak hour. The model is: Number of peak hour vehicle-based shopping trips per household = 0.19+0.12(household size) +0.02(annual household income in thousands of dollars) -0.15(employment in the household’s neighborhood, in hundreds) A particular household has six members and an annual income of $75,000 and live in a neighborhood with 600 retail employees. If the annual income increases to $100,000, calculate the change in number of vehicle-based peak-hour shopping trips the household makes before and after the income increase.

Answer 1

Given,

Number of peak hour vehicle-based shopping trips per household = 0.19+0.12(household size) +0.02(annual household income in thousands of dollars) -0.15(employment in the household’s neighborhood, in hundreds)

Therefore, Number of peak hour vehicle-based shopping trips per household before increase in annual income = 0.19+0.12(6) +0.02(75) -0.15(6) = 1.51

Number of peak hour vehicle-based shopping trips per household after increase in annual income = 0.19+0.12(6) +0.02(100) -0.15(6) = 2.01.

Change in number of vehicle-based peak-hour shopping trips the household makes before and after the income increase =

2.01 -1.51 = 0.5.