Objectives:  1. Estimate individual travel-cost model.
                    2. Determine individual CS, TR, and TB based on this model.

1. Study the definitions of the variables collected from the respondents.  Select and rationalize your choice of independent variables that you will control for in your model.  Include the expected effect of each variable on the dependent variable, TC = travel costs.  Also mention any important variables that you would ordinarily include in a travel-cost study that are unavailable.  You can study the survey itself as well as more information about data collection and other aspects of the original research in the North Carolina section of 1995-96 Economic Impact of Travel to the Blue Ridge Parkway:  Virginia and North Carolina.  Hunter Library holds a copy of this paper on reserve under my name and Econ 493.  AAA-Carolinas (800-477-4222) suggests a value of 10.7 cents/mile to travel in your auto if you travel about 15,000 miles/year (11/4/98).  (About 46.1 cents/mile to own and operate a car that you drive about 15,000 miles/yr.)  You may include a discussion of variables you would include, but missing data caused a loss of too many observations as well as relevant variables not included in the survey.  (Delete rows for observations that have missing values for any variables you include in your model.)

2. Present your estimated model (include printout) and the relevant statistics to evaluate the model.  Present your evaluation of the worthiness of the model (R2 along with conclusions and interpretations of T and F tests—details unnecessary).  Include possible explanations for problems or poor results.

3. Compute CS, TR, and TB for typical individual (use variable means or medians).  Show your work.
 

You may answer questions by number rather than a formal write-up for the written portion of this assignment.  You should use paragraphs when necessary and good grammar always.  Use a format that presents your answers clearly and concisely.  On presentation day I will collect these at the start of class.  You may turn it in earlier.

Prepare handouts/slides for your oral presentation that will facilitate your audience's understanding and will speed the presentation.  You cannot simply read what you have written or what is on the slide—you must be familiar with your work and able to answer questions.  You must also hand in an outline of major points that you will include, so that I can follow your presentation.  Regardless of how it may seem at this point, this is not meant to be a complex assignment.

The written and oral presentation along with your evaluations of the other presenters will be worth 50 points of the final exam.

(Note: presentation is informal to a certain degree—no special dress, however, no hats—but you must competently relay your information to your audience and maintain contact with them).