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Case Study: 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).
Question 1. Develop a Neural Network prediction model for consumption.
Question 2. Rationalize the chosen structure of the model.
Question 3. What is the predicted consumption if disposal income is $33,000 for a professional job?
Question 4. Comment on the predicted values
Question 5. What are the limitations of the model?
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