Question

A multinomial logit model has been estimated using the mode choice survey data conducted
by the City and County of Honolulu in 2017. The alternatives for commuters to go to
downtown Albuquerque are: drive, bus, and carpool. The estimated utility functions for the
choices are:
U(Bus)= 8.051 + 0.576(Gender) - 0.000042(Income) – 0.626(Bus Stop Distance)
U(Drive) = -1.479 + 0.053(Distance) + 0.000089(Income)
U(Carpool) = 0 + 0.319(Distance) - 0.000012(Income)
Where
Gender = 0 (Male), 1 (Female)
Income = household annual income in dollars
Bus Stop Distance = distance from home to bus stop in blocks
Distance = distance from home to downtown Albuquerque in miles
Mary works in downtown and has the following characteristics: Gender =1, Bus Stop Distance
(blocks) =4, Income =$40,000, and Distance (miles) = 12. Please compute the probability for
Mary to choose each mode. Which mode is Mary most likely to choose? If Mary’s household
income increases to $60,000, will she be very likely to switch her top choice to another mode? Why?

Answer 1