2. Consider the results of the regression of monthly real estate loans (RE) in billions of

dollars by commercial banks over the period January 2013 through September 2016

in the following table:

Time Series Regression Results for Real Estate Loans

Model: REt = b0 + b1t + t t = 1, 2, ..., 45

R2 0.967908

Adjusted R2 0.9671617

Standard error 29.587649

Observations 45

Coefficients Standard Error

Intercept 1195.6241 8.9704362

b1 12.230448 0.3396171

a. Which time series model are we using to estimate the real estate loans against time?

b. Are the intercept and slope coefficient significantly different from zero at the 5%

level of significance?

c. How do you interpret the b1?

d. What is the forecasted value of real estate loans for October 2016?

How do I identify what series model this is? Also, what information is the b1 showing me?