C o n tin u in g w ith th e e a rlie r e x a m p le o f fo o d e x p e n d itu re , le t th e e s tim a te d re g re s ­

s io n b e ŷ = 12 + 5 6 6 In (x ).

a. W h a t is the p re d ic te d fo o d e x p e n d itu re fo r an in d iv id u a l w h o se in c o m e is $20 ,0 0 0 ?

b . W h a t is th e p re d ic te d v a lu e i f in c o m e in cre a se s to $ 2 1 ,0 0 0 ?

c . In te rp re t th e s lo p e c o e ffic ie n t, b 1 = 5 6 6 .