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4. Use regression analysis in Excel to estimate the beta coefficient using the nominal interest rate as the dependent variable and inflation rate as an

4. Use regression analysis in Excel to estimate the beta coefficient using the nominal interest rate as the dependent variable and inflation rate as an independent variable during 1987-2017, and interpret the meaning of estimated equation and beta coefficient.

Inflation Premium Rate Nominal Interest Rate Year
3.7 9.38 1987
4.1 9.71 1988
4.8 9.26 1989
5.4 9.32 1990
4.2 8.77 1991
3 8.14 1992
3 7.22 1993
2.6 7.97 1994
2.8 7.59 1995
2.9 7.37 1996
2.3 7.27 1997
1.6 6.53 1998
2.2 7.05 1999
3.4 7.62 2000
2.8 7.08 2001
1.6 6.49 2002
2.3 5.66 2003
2.7 5.63 2004
3.4 5.23 2005
3.2 5.59 2006
2.9 5.56 2007
3.8 5.63 2008
-0.4 5.31 2009
1.6 4.94 2010
3.2 4.64 2011
2.1 3.67 2012
1.5 4.23 2013
1.6 4.16 2014
0.1 3.89 2015

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