I'm attempting to estimate a person's annual spending on healthcare based on their household income and age.
Given the following data from the Consumer Expenditures Survey:
Healthcare Spending (Average) $4,968
Healthcare Spending (by Household Income) $0–49K $3,411 $50–99K $5,151 $100–149K $6,836 $150–199K $7,664 $200+K $9,031
Healthcare Spending (by Respondent Age) 0–24 $1,206 25–44 $3,072 45–64 $5,450 65+ $6,802
It seems fairly easy to do the following:
If I know a person's household income is
$85,000I can estimate their annual healthcare spending at
If I know a person's age is
42I can estimate their annual healthcare spending at
But if I knew both of those facts, how would I go about estimate their spending using both breakdowns at once? Ensuring that I'm not accidentally "double counting" the impact if the two variables are not fully independent.
I also happen to know the average household incomes for each age group, and the average age for each income group.
Household Income (by Respondent Age) 0–24 $32,268 25–44 $74,082 45–64 $98,538 65+ $51,624
Respondent Age (by Household Income) $0–49K 54.0 $50–99K 48.6 $100–149K 47.9 $150–199K 48.8 $200+K 49.7
I figure those two will be involved to determine how co-dependent the two variables are. But I'm not sure how to detangle them.