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Date Income Consumption Q1, 2000 31192 28634 Q2, 2000 31438 28837 Q3, 2000 31719 29039 Q4, 2000 31742 29220 Q1, 2001 31940 29276 Q2, 2001

Date Income Consumption
Q1, 2000 31192 28634
Q2, 2000 31438 28837
Q3, 2000 31719 29039
Q4, 2000 31742 29220
Q1, 2001 31940 29276
Q2, 2001 31836 29282
Q3, 2001 32504 29313
Q4, 2001 32020 29685
Q1, 2002 32728 29709
Q2, 2002 32821 29795
Q3, 2002 32696 29927
Q4, 2002 32773 30014
Q1, 2003 32796 30084
Q2, 2003 33197 30351
Q3, 2003 33657 30722
Q4, 2003 33713 30887
Q1, 2004 33893 31127
Q2, 2004 34152 31261
Q3, 2004 34247 31481
Q4, 2004 34589 31725
Q1, 2005 34183 31900
Q2, 2005 34380 32178
Q3, 2005 34469 32345
Q4, 2005 34666 32386
Q1, 2006 35380 32677
Q2, 2006 35354 32777
Q3, 2006 35363 32884
Q4, 2006 35734 33134
Q1, 2007 35889 33235
Q2, 2007 35878 33273
Q3, 2007 35880 33335
Q4, 2007 35819 33292
Q1, 2008 35998 33150
Q2, 2008 36677 33134
Q3, 2008 35747 32814
Q4, 2008 35892 32344
Q1, 2009 35752 32167
Q2, 2009 35932 31957
Q3, 2009 35456 32076
Q4, 2009 35328 31999
Q1, 2010 35293 32106
Q2, 2010 35686 32308
Q3, 2010 35791 32451
Q4, 2010 35967 32717
Q1, 2011 36346 32826
Q2, 2011 36228 32836
Q3, 2011 36347 32913
Q4, 2011 36299 32959
Q1, 2012 36832 33104
Q2, 2012 37054 33105
Q3, 2012 36963 33128
Q4, 2012 37860 33156
Q1, 2013 36226 33263
Q2, 2013 36380 33280
Q3, 2013 36522 33370
Q4, 2013 36528 33585
Q1, 2014 36872 33688
Q2, 2014 37289 33946
Q3, 2014 37587 34190
Q4, 2014 37907 34508
Q1, 2015 38033 34659
Q2, 2015 38336 34850
Q3, 2015 38571 35015
Q4, 2015 38785 35147
Q1, 2016 38927 35236
Q2, 2016 39148 35550
Q3, 2016 39354 35743
Q4, 2016 39254 35987

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?

When answering this assignment, include a full report that will include an abstract, introduction, theory, results and discussion. conclusions and references.

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