Question
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
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 "Midterm-Dataset-1" shows data of average US annual consumption (in $), disposable income (in $) for the years 2000 to 2016, and the job type (1: professional, 0: otherwise).
1. Develop a Neural Network prediction model for consumption.
2. Rationalize the chosen structure of the model.
3. What is the predicted consumption if disposal income is $33,000 for a professional job?
4. Comment on the predicted values
5. What are the limitations of the model?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started