Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where:: a. x represents income earned.
b. y represents income earned.
c. b = 1/2.

a. x represents income earned

Explanation:

Using the model, which is the equation of a line or regression model.

y = mx + c

The base amount of $1000 which is always included is constant, this represents c, the intercept.

x in the equation is the independent variable, which is the income earned, and dictates the change in the amount spent y

m = 1/2 which dictates the proportion of the income earned that is spent.

y = the amount which is spend

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