Problem 2: (50 pts) You are given 204 observations from a travel survey conducted in the Seattle Metropolitan area. The purpose of the survey was to study the number of times (per week) commuters changed their departure time on their work-to-home trip to avoid traffic congestion. The data are non-negative integers with the mean approximately equal to the variance. Your task is to estimate the appropriate count-data model. • Following the forward stepwise process, find your best fit model specification. Some things to consider as you fit your model: - Is there acceptable correlation among explanatory variables? Do the signs of the coefficients make sense? You will need to create indicators for some of the variables. - Is the model you have chosen to use appropriate? Double-check after you have arrived at your best fit specifications. Explain your process of determining if the count-data model you are using is appropriate or not be specific. • After you have arrived at your best fit model specifications, provide a discussion of the logical process that led you to the selection of your final specification. • Present the descriptive statistics of the variables in your final model specification. You do not have to categorize variables by category, but are welcome to do so. Points deducted for incorrect model presentation. • Present your model as shown in the document on Canvas. You do not have to categorize variables by category, but are welcome to do so. Points deducted for incorrect model presentation. • Provide a discussion for each of the variables in your final model specification, including their quantitative effect on your dependent variable. What are some plausible reasons for the significance of the variable and its effect on changing the number of times (per week) a commuter changed their departure time? You are welcome to use your intuition or find sources that confirm/validate your results. • Based on the distribution of your dependent variable, would a truncated model, cen- sored model, or zero-inflated model be appropriate? Explain and be specific. Definitions of variables are given on the following page.

Fig: 1