The consumption function captures one of the key relationships in economic. It expresses consumption as a function of disposal income, where disposable income is income after taxes. The attached file “Assignment 2 – Dataset ” shows data of average US annual consumption (in $) and disposable income (in $) for the years 2000 to 2016. 1. Develop a Neural Network (NN) prediction model for consumption. 2. Rationalize the chosen structure of the model. 3. What is the predicted consumption if disposal income is $33,000? 4. Simulate the impact of the model variables. 5. Discuss the application of the biases in the activation functions and the Deep Feedforward Neural Network application. 6. What are the limitations of the model?
The consumption function captures one of the key relationships in economic. It expresses consumption as a function of disposal income, where disposable income is income after taxes. The attached file “Assignment 2 – Dataset ” shows data of average US annual consumption (in $) and disposable income (in $) for the years 2000 to 2016. 1. Develop a Neural Network (NN) prediction model for consumption. 2. Rationalize the chosen structure of the model. 3. What is the predicted consumption if disposal income is $33,000? 4. Simulate the impact of the model variables. 5. Discuss the application of the biases in the activation functions and the Deep Feedforward Neural Network application. 6. What are the limitations of the model? Submit a PDF file for your answers as well as the python code (filename.py)
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