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? Question 2: A Realtor in Massachusetts is analyzing the relationship between the sale price of a home (in %), it's the square footage (in ft2), the number of bedrooms, the number of bathrooms, and a colonial dummy variable (colonial equals 1 if a colonial-style home; 0 otherwise). The relater collects data of 36 sales in Massachusetts for the analysis. The attached file "Regression Assignment - Dataset 2" contains the data. 1. Estimate the linear regression model for the price. 2. Interpret the coefficients attached to area (square footage) and colonial. 3. Predict the price of 2100 ft2 colonial style home with two bedrooms and two bathrooms. Submit a PDF file for your answers as well as the excel sheet