Question: The accompanying data file includes monthly data on the personal savings rate (Savings in %) and the personal disposable income (Income in $ billions) in

The accompanying data file includes monthly data on the personal savings rate (Savings in %) and the personal disposable income (Income in $ billions) in the U.S.
a. Estimate the linear model Savings = β₀ + β₁Income + ε and the log-log model ln(Savings) = β₀ + β₁ln(Income) + ε. For each model, predict Savings if Income = $10,500.
b. Which is the preferred model? Explain.

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