Question 1: The consumption function captures one of the key relationships in economic. It expresses consumption as a function of disposal income, where disposal income is income after taxes. The attached file "Regression Assignment - Dataset 1" shows data of average US annual consumption (in $) and disposable income (in $) for the years 2000 to 2016. 1. Find the sample linear regression equation for the model 2. In this model, the slope coefficient is called the marginal propensity to consume. Interpret its meaning 3. What is the predicted consumption if disposal income is $33,000? fx V A B C D E F. 1 Price Beds Baths Col Sqft 2768 2 840000 4 3.5 1 3 822000 2500 4 2.5 1 4 713000 2400 3 3 1 5 689000 2200 3 2.5 1 6 685000 2716 3 3.5 1 7 645000 2524 3 2 1 8 625000 2732 4 2.5 O 9 2436 4 3.5 1 620000 587500 10 2100 3 1.5 1 11 585000 1947 3 1.5 1 12 583000 3 2.5 1 2224 3262 13 569000 4 2 0 14 546000 1792 3 2 0 15 540000 3 1.5 0 1488 2907 16 537000 3 2.5 0 17 516000 1951 4 2. 1 18 511000 1752 3 1.5 1 19 510000 3 2 1 1727 1692 20 495000 3 2 0 . 2. 21 1714 3 0 463000 457000 22 1650 3 2 0 mm 23 451000 1685 3 2 0 24 1500 3 1.5 1 435000 431700 25 1896 2 1.5 0 26 414000 1182 2 1.5 0 27 401500 1152 3 1 0 28 399000 1383 4 1 0 29 380000 4 2. 0 1344 1272 30 380000 3 1 0 1 1 a fx A B D E LL SU 9 620000 2436 4 3.5 1 10 2100 3 1.5 1 587500 585000 11 1947 3 1.5 1 12 2224 3 2.5 1 13 4 2 0 3262 1792 14 3 2 0 583000 569000 546000 540000 537000 516000 15 3 1.5 0 1488 2907 16 3 2.5 0 17 1951 4 2 1 18 1752 3 1.5 1 511000 510000 nin 19 1727 3 2 1 20 495000 1692 3 2 0 21 3 2 0 22 1714 1650 1685 3 2 0 23 3 0 463000 457000 451000 435000 431700 414000 401500 2 1.5 24 1500 3 1 25 2 1.5 0 1896 1182 in in 26 2 1.5 0 27 1152 3 1 28 399000 1383 4 1 0 0 0 29 380000 1344 4 2 30 1272 3 1 0 31 2275 5 1 0 380000 375900 372000 367500 32 1005 2 1 0 33 1272 3 1 0 34 356500 1431 2 1 2 3 35 330000 1362 1 0 36 330000 1465 3 1 0 37 307500 850 1 1 0 38 39 40 41 42