Regression analysis

You project is to research and write a ten page paper wherein you estimate the demand for money using
regression analysis; regression analysis is explained in chapter 5 and can be done in Excel; no, it is not to
estimate why people demand money for a major expenditure; rather, it is to estimate the demand curve for
money; or why do people hold their wealth in the form of money (use M1 as your measure of money) rather
than another asset that will provide a rate of return higher than the rate on one’s checking account, or cash.
All data for the project can be downloaded into an Excel spreadsheet from the St. Louis Federal Reserve
Bank site (Google fred ti to find the site).

Sample Solution