Please answer 5.3 a-e. Thank you! -U-NWS5.3 Consider the following model that relates the percentage of a household's budget spent on alcoholWALC to total expenditure TOTEXP, age of the household head AGE, and the number of children inthe household NK.WALC=B₁ + B₂ In(TOTEXP) + B3NK + B4AGE + eThis model was estimated using 1200 observations from London. An incomplete version of this outputis provided in Table 5.6.In(TOTEXP)NKAGETABLE 5.6Dependent Variable: WALCIncluded observations: 1200VariableCOutput for Exercise 5.3R-squaredS.E. of regressionSum squared residCoefficient1.45152.7648-0.150346221.62Std. Error2.2019ii. The standard error for b₂.iii. The estimate b3.iv. R2.0.36950.0235labol noiseenga olqislum erit 5.8 Exercises 235a. Fill in the following blank spaces that appear in this table.i. The t-statistic for b₁.t-StatisticEM2000 5.7103-3.9376-6.4019Mean dependent varS.D. dependent var bon faldv. 6.b. Interpret each of the estimates b2, b3, and b4.c. Compute a 95% interval estimate for ß4. What does this interval tell you?d. Are each of the coefficient estimates significant at a 5% level? Why?Prob.0.50990.00000.00010.00006.194346.39547moste. Test the hypothesis that the addition of an extra child decreases the mean budget share of alcoholby 2 percentage points against the alternative that the decrease is not equal to 2 percentage points.Use a 5% significance level.5.4 Consider the following model that relates the percentage of a household's budget spent on alcohol,WALC, to total expenditure TOTEXP, age of the household head AGE, and the number of children inthe household NK.WALC=B₁ + B₂ In(TOTEXP) + B3NK + B4AGE + B,AGE2 + eSome output from estimating this model using 1200 observations from London is provided in Table 5.7.The covariance matrix relates to the coefficients b3, b4, and bg.a. Find a point estimate and a 95% interval estimate for the change in the mean budget percentageshare for alcohol when a household has an extra child.b. Find a point estimate and a 95% interval estimate for the marginal effect of AGE on the mean budgetc. Find a point estimate and a 95% interval estimate for the age at which the mean budget percentagepercentage share for alcohol when (i) AGE = 25, (ii) AGE = 50, and (iii) AGE = 75.share for alcohol is at a minimum.d. Summarize what you have discovered from the point and interval estimates in (a), (b), and (c).normally distributed,

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