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significance using the Student's "t" test.
The coefficient of determination, showing the percentage of the total variance of the demand for the local transit explained by all the explanatory variables included in the regression, was computed and tested for its statistical significance at least at the five per cent level using the Fisher's "F" test.
II. The Theoretical Model A. The Aggregate Demand Function It seems to be reasonable to assume that as the size of city population increases, the demand for the local transit will also increase. This reflects that the city population size has a positive effect on the total number of passengers. Similarly, a rise in the total number of employees in the city is expected to increase the aggregate demand for the local transit. It is known that a rise in the per capita income of the city population will raise the purchasing power of the population which, in turn, will increase their demand for consumer goods including the local transit. As a result, the total number of transit passengers will be up with an increase in the per capita income. The habit persistence postulate in the consumer theory tells us that people used a special type of good or service to satisfy their need last year are very likely to use the same type of good or service 2 to satisfy the same kind of need this year.
This postulate, as applied
to our study, shows that people used the transit for their transportation are likely to keep using it. As a consequence, the total number of