Transportation Economics Statistical Analysis

Question a

Finding the adjustment factor.

Question b

Estimate in demands, of the number of people who travel between Irvington, NJ and New York City per week 

Question c

Mathematical representation for linear aggregate demand.

x in this case refers to mode type, trip, purpose, time of day, trip length, maker characteristics, existing level of factor.

V is the point of elasticity of travel demand.

 represents the change of point of elasticity of travel demand with respect to x.

Question d

Cost of parking has increased by 15%. Number of vehicles decreased by 10%. Bus trips have increased by 25%.

Let:

Initial parking price be 

Final parking price be 

Initial transit demand be 

Final transit demand be 

Initial auto demand be 

Final auto demand be 

Question e

Average cost is a cost accounting term that is sometimes referred to as unit cost or weighted average cost and is used to refer to per unit cost of production. Average costs can be defined in detail considering the following three Average Total Costs (ATC), Average Fixed Costs (AFC) and Average Variable Costs (AVC). Average Total Cost refers to the total cost that is associated with a single unit of output. It is ratio of total cost to the output:  , where TC is the total cost and V is the volume (output). Average Fixed Costs (AFC), on the other hand, is the fixed cost associated with a single unit of output. It is the measured as the ratio of fixed cost to the output,  . Average Variable Cost is the cost of a unit of output calculated as the ratio of variable cost to the output,  . Calculation of average costs is useful in the economic evaluation of transportation system improvements as it is helpful in accessing the cost impacts of improvements at a given suppl level.

Initial average cost of a crate of wine:  , with 8 bottles

New average cost of a crate of wine: $82, with 10 bottles

Difference in bottle cost; 

Increase in price of crate is 

Question f

Marginal cost of a transportation good or service is the derivative (difference) of total cost with respect to a change in output. The analysis of marginal cost is relevant in transportation system evaluation because an agency may seek the incremental cost changes in response to production of an additional unit output.

Difference in bottle cost; 

The marginal cost is  per bottle.

Increase in price of crate is 

Question g

Unit travel is the in-vehicle travel times per traveler and given by the formula below:

Where OCC is the average vehicle operating travel in minutes and TTV is the average vehicle operating travel in minutes.

Therefore, in our case, the unit travel is given by

 without interruption.

References 

Momoh, O. (2018). Average Cost Method. Retrieved from https://www.investopedia.com/terms/a/averagecostmethod.asp 

Transportation Demand, Statistical Analysis of Economic Relations, Vehicle Operating Costs & Interest Calculation, Box Model, & Programming Problems [PowerPoint presentation].

Transportation Economics/Costs - Wikibooks, open books for an open world. (2018). Retrieved from https://en.wikibooks.org/wiki/Transportation_Economics/Costs