The president needs to predict future expenditures on Medicaid. Office of Management and Budget (OMB) analyst Alex Pacek undertakes the task. With Medicaid expenditures expressed in millions of 1967 dollars and using data from 1964 (year 1) to 2011, the OMB gets the following regression:

Interpret this regression. What is your best guess as to Medicaid expenditures in 2012? In 2013?

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Y = -669.9 + 306X $b = 10.77 10.77 Syx = 320 N = 48 ² = 98 Sul