Lightning Quiz – Lecture 9

Utility is treated as a random variable in the random utility approach because:

• (a) Analyst lacks perfect knowledge of alternatives and attributes

• (b) Decision-makers make choices irrationally

• (c) Travelers do not maximize utility

• (d) All of the above

An analyst uses the number of transit stops within a one-mile radius of a person’s home to measure access to public transportation. This is an example of:

• (a) Unobserved attribute

• (b) Unobserved taste variation

• (c) Proxy variable

• (d) Both (a) and (c)

A commuter is equally likely to choose car and bus for travel. If rideshare is introduced as a new alternative, which of the following choice probabilities are consistent with Luce’s model?

• (a) Car: 50%, Bus: 30%

• (b) Car: 50%, Bus: 40%

• (c) Car: 40%, Bus: 40%

• (d) Car: 30%, Bus: 45%

Commuter rail is newly introduced alongside existing travel options (bus, car, and subway) for a city. If commuter rail and subway are perceived as similar alternatives, the logit model will underestimate the probability of choosing commuter rail.

• (a) True

• (b) False

Which is the appropriate model to predict a traveler’s probability of choosing Uber and Lyft?

• (a) Logit

• (b) Probit

• (c) Either logit or probit