Choice of Travelling mode between Sidney and Melbourne GREENE CH 19 "ECONOMETRIC ANALYSIS" 5TH ED Table F21.2: Data Used to Study Travel Mode Choice (1997) The R file contains data about revealed preferences of mode choice on 210 individuals. Original data is in wide format, but RData is in long type format with 840 registers: alternative specific information for the 4 competing modes is available for the 210 individuals. The alternatives are: Air, Train, Bus, or Car - Ref. Car The variables are: 1. 2. 3. 4. 5. 6. 7. mode = choice; Air, Train, Bus, or Car - Ref. Car ttme = terminal waiting time, 0 for car invc = in vehicle cost - cost component, invt = travel time, in vehicle, gcost = generalized cost measure, hinc = household income, psize = party size in mode chosen. 1. Load R Workspace. Summarize data. Later, define a nest variable for each observation, for HLogit, modes are specified to be ground alternatives (2,3,4) in one nest and fly alternative (1) in another nest. Randomly split the sample in two sets: Working Set for estimation purposes and Test Set (60-40 or 70-30). a. Be careful to check in the long format data.frame that variables are properly defined. b. Define a dummy variable ground containing 1 for all registers belonging to ground alternatives alternatives. c. Define a dummy variable iflyinc containing individual home’s income for the flying alternative and 0 for the rest (interaction between individual variable and flying alternative, i.e. exogenous income variable would be included as a generic/specific alternative variable only for flying alternative). d. Define a dummy variable ipsizeinc containing individual home’s income for car alternative and 0 for non car alternatives (interaction between individual variable and car alternative, i.e. exogenous income variable would be included as a generic/specific alternative variable only for car alternative). 2. Formulate and discuss partworths in a simple MNL modelwith/ without alternative specific constants. a. Compute null model (with constants in the utilities). Write systematic utility for each alternative. b. Compute the pure conditional multinomial logit with generic coefficients for invehicle time and in vehicle cost (invt, invc): with/without alternative specific constants. Write systematic utility for each alternative. c. Check partworths consistency and statistical significance. Compute predictive capacity and check market share in model prediction and actual data. 1 d. Compute wish to pay, i.e. extra money $AUS to pay to save one unit of in vehicle travel time. e. Compute manually the alternative specific constants if alternative 2 were used as the reference one. Check with mlogit results. 3. House income is going to be considered. Formulate, compute and discuss 2/3 possibilities containing as generic alternative variables invt and invc. Write systematic utility for each alternative. Which one do you prefer? 4. Introduce waiting time at the terminal as alternative variable. Is it worth to use alternative specific coefficients or statistically equivalent to propose a generic coefficient options? Write systematic utility for each alternative. 5. Introduce psize of the group as individual variable considered in all alternatives or just in a subset. Is it worth statistically? Write systematic utility for each alternative. 6. Some authors (Simon Jackman, Models for Unordered Outcomes, Univ. Standford, 2003) discuss a model with alternative variables generalized cost and waiting time at the terminal and house income for flying alternative. Compute, discuss and compare this model with those proposed in previous points. Write systematic utility for each alternative and compute prediction rate for Working Set and Test Set. 7. Try an MNL heterocedástic option considering alternative variables generalized cost and waiting time at the terminal and house income for flying alternative. 8. Compute a nested logit model considering two nodes: flying and ground nodes. Write alternative utilities and check consistency in each case: a) a common log sum parameter is considered for the two nests b) node specific log –sum parameters c) Check if log –sum parameter/s (depending on previous results) is significatively different from 1 d) Select the best proposal available at this point. 9. Compute a nested logit model considering three nodes: flying, car and bus-train nodes. Write alternative utilities and check consistency in each case: a) a common log sum parameter is considered for the three nests b) node specific log –sum parameters c) Check if log –sum parameter/s (depending on previous results) is significatively different from 1 d) Select the best proposal available at this point. 2