A financial analyst analyzes the impact that domestic and foreign interest rates may have on local inflation; After collecting the data, he generated the following report:

Variable	Coefficient	Typical error	t-statistic	Probability
Constant	0.005967	0.011568	0.515804	0.6219
domestic rate	0.720181	0.141997	5.071790	0.0014
External rate	-0.399377	0.314909	-1.268210	0.2453
No. of data	10		R cuadrada	0.815738
F-statistic	15.49474		R^2 ajustada	0.763092
probability F	0.002685		Durbin-Watson	1.962544

1. Build the regression equation.

2. Explain, which rate is statistically significant?

3. Interpret the coefficient of determination.

4. Apply the Durbin-Watson test.

a. Determine if there is autocorrelation.