2. The following table shows the volume of the U.S. Money supply M1 (in trillions of dollars) for 8 months from November 2014 to June 2015 (source: Federal Reserve Bank of St. Louis). Monthly Money Supply M1 Month ΜΙ Month M1 November 2.88 March 2.99 December 2.90 April 2.99 January 2.93 May 2.98 February 3.00 June 3.01 a) Estimate (hand calculate) a linear trend model for US monthly money supply M1. b) If the standard error of the slope is 0.004. determine that M1 has a positive trend. c) Predict the volume of the money supply for July and August of 2015.

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