Discuss the below:
Q: A mode-choice model for a city includes the following modes: autos (A), light rail (L), buses (B), and rapid rail (R), with utility functions (U), as shown in the table: where C is the cost in dollars, and T is the time in minutes.
|
Function
|
Cost (C)
|
Time (7)
|
|
U(A) = 3.2 - 0.3C - 0.04T
|
5
|
30
|
|
U(L) = 1.0 - 0.2C - 0.04T
|
3
|
25
|
|
U(B) = 0 - 0.1C - 0.01T
|
2.5
|
40
|
|
11(R) = 1.5 - 0.3C - 0.05T
|
6
|
20
|
a. Based on an estimate that 12,000 workers will head for downtown each morning, how many workers will choose to take a particular mode?
b. If the government subsidizes light rail by 30%, buses by 20%, and rail rapid by 10%, and at the same time increases automobile costs by 15%, what will be the new modal distribution?