with qudinitu IU 150 170 (2)The data below show aggregate consumption expenditur

Question

with qudinitu IU 150 170 (2)The data below show aggregate consumption expenditure and disposable incofH 2010 2011 2012 2013 2014 2015 2016 124 128 140 148 Year Consumption Disposable Income (a)Write a regression model that relates both variables in both" general" and "specific forms". Brief explain why the specific form of the model is preferred. (b)Estimate the parameters of the model and write the results in standard form. (c)Interpret the estimated results 130 156 142 160 148 164 154 178 ffin tuhes at random from a very large shipment of tub

Explanation / Answer

a) Consumption^ = a + b * Income

here consumption is dependent variable. Income is independent variable

as Income increase , we can say that consumption also increase

b)

y^ = -2.1031 + 0.8877 *Income

c)

It means that on average if income increase by 1 unit , consumption increases by 0.8877 units

Please rate

SUMMARY OUTPUT Regression Statistics Multiple R 0.955232099 R Square 0.912468363 Adjusted R Square 0.894962035 Standard Error 3.883999545 Observations 7 ANOVA df SS MS F Significance F Regression 1 786.2870234 786.2870234 52.12220352 0.000795014 Residual 5 75.42726231 15.08545246 Total 6 861.7142857 Coefficients Standard Error t Stat P-value Lower 95% Intercept -2.103092784 19.65877716 -0.106979837 0.918964876 -52.63758825 income 0.887743414 0.12296346 7.219570868 0.000795014 0.571655777

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