Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

# Problem 1: I have uploaded data (PCE-PDI.xls) for the US total personal consumption expenditures and total disposable income from 1971:1 to 2009:...

**Problem 1:** I have uploaded data (PCE-PDI.xls) for the US total personal consumption expenditures and total disposable income from 1971:1 to 2009:7. Divide the entire sample into two subsamples: 1971:01 to 1985:12 and 1986:01 to 2009:07. Here consumption expenditure (PCE) is the dependent variable and disposable income (PDI) is the independent variable. Let variable Y denotes consumption expenditure and variable X denotes disposable income.

(a) Estimate a two-variable regression model for both subsamples and report the estimated results. (10)

1971:01-1985:12