5. (25 points) The basic consumption function model says that consumption is explained by disposable income. We collect data to estimate this effect in homework #6. Part of the results are listed below: a summarize statistics table and a summary of the regression results (where Icon is the natural log of consumption variable PCEC96, and linc is the log of income variable, i.e, In(DSPIC96). Statistic N Mean St. Dev. Min Pot1 (25) Pot1 (75) Max Date 231 2, 011 . 19 5.57 2, 002.01 2, 006.11 2, 016.05 2, 021. PCEC96 231 11, 142. 62 1, 217 . 44 8 8, 981. 70 10, 419. 90 12, 187. 65 13, 596.60 DSPIC96 231 12, 465. 51 1 1, 683.24 9, 968.30 11, 352. 40 13, 601.15 19, 335 . 60 GS5 231 2.37 1. 27 0.27 1. 49 3.23 5. 07 Im(formula = Icon ~ linc + GS5, data = mydata) Residuals: Min 1Q Median 3Q Max -0.275242 -0.005201 0.002672 0.014933 0.032903 Coefficients: Estimate Std. Error t value Pr(>Itl) (Intercept) 1.389660 0.187515 7.411 2.43e-12*** linc 0.839183 0.019572 42.876