The accompanying table shows a portion of the monthly data on the personal savings rate (Savings) and personal disposable income (Income) in the U.S. from January 2007 to November 2010.

a. Compare the linear model, Savings = β0 + β1 Income + ε, with a log-log model, ln (Savings) = β0 + β1 ln (Income) + ε.
b. Interpret the estimated slope coefficient of both models.
c. Which is the preferred model? Explain.

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Date 2007-01 2007-02 Savings (%) | 2.2 2.3 Income ($ billions) 10198.2 10252.9 2010-11 5.5 11511.9