1. Presented below are the results of quadratic regression analysis (y= a + bx – cx2) of weekly household income (y) and expenditure (y) according to the age of the household head (x) in Australia in 2003-2004. Using the information provided: 1) Estimate weekly household income (y) and expenditure (y) if the age of the household head (x) was 25, 30, 35, 40, 45, 50, 55, 60, 65 and 70 years (Note: Using Excel is recommended for this question). [7 marks] 2) Using the results of the estimation in part 1), draw the Hump-shaped graphs of income and expenditure according to the ages of household head in one chart (Note: Using Excel is recommended for this question). [2 marks] 3) Discuss Modigliani's Life-cycle Hypothesis and explain life-cycle humps in household income and household expenditure. [3 marks] 4) Referring to the Life-Cycle Hypothesis discussed in 3), analyse the shapes and patterns of weekly household income and expenditure according to the ages of household head in Australia in 2003-2004. [3 marks] a Intercept b Coefficient of x c Coefficient of x2 Average household weekly income -121.40 75.56 0.85 Average household weekly expenditure -114.35 71.08 0.85