Assume that you are a research analyst in a business firm. Your team leader has given you a research task to investigate whether the Private Gross Fixed Capital Formation (on Machinery and Equipment) in Australia is a good predictor of the Gross Domestic Production of the country.

1. Using the Simple Linear Regression technique,

(a) develop a model to explain the relationship between GFCF and GDP. Explain the reason for your choice of the dependent and independent variables of your model.

(b) estimate the model you proposed in 4(a) using Excel and display the output.

(c) interpret the estimated coefficients you obtained in 4(b).

2. Applying appropriate statistical techniques, (a) test whether the linear relationship between Gross Fixed Capital Formation - Machinery and Equipment and Gross Domestic Product you estimated in Q4 is significant (use a = 0.05).

(Hint: display 6 steps process in relation to this test).

(b) assess the fitness of the estimated model you have estimated in Q4.

Information:

Private ;Gross fixed capital formation - Machinery and equipment - Total

4201 5347 4906 6496 4924 6455 5610 6822 5932 7517 6231 7907 6897 8253 7153 7608 6045 7030 6466 6619 5062 6044 5533 5959 5120 6025 5412 7905 6095 7335 6765 7716 7032 8410 8093 9410 7421 9657 8332 9366 8635 10754 8990 10411 8237 11850 10233 11918 9852 11432 10515 10917 10010 10741 10533 11547 10404 12739 11989 12205 10968 12144 11335 12846 11179 13021 11982 15787 12726 14401 14068 15662 12967 15122 14604 18073 14487 17639 16620 20593 17234 18756 16692 19013 16639 20099 18392 22040 17170 22602 18606 21781 16794 21365 16696 21979 15452 18417 15131 18893 14925 19317 17841 20939 16226 21116 18701 21616 15402 18725 16779 18352 14481 17595 16907 19741 14767 18645 15909 18964 13962 18401 16041 18527 13468 17967 16251 19411 14905 19409 17584 20524 15409 20999 17788 20893 15336 18683 15937 20215

GROSS DOMESTIC PRODUCT ;

62216 65670 67753 75438 68663 73856 77329 85110 78388 83062 87171 96423 88888 95054 98099 106078 97616 102066 103077 110022 99285 102101 103806 110594 102604 105443 107678 115761 107896 112061 112760 121621 113272 118107 121738 128551 119481 124797 127824 138652 127739 133384 134899 145688 133347 141357 143067 154439 142239 148352 151211 162101 150783 156046 159515 170397 162710 168538 173368 181130 172591 177978 182309 195437 184154 192353 196035 208546 194536 201843 207212 224446 209963 219418 223796 239055 223663 235857 242391 259785 241058 253197 262522 280910 264271 278890 284163 304124 284457 304570 315463 330625 302567 311491 313468 334083 314031 339629 344636 364835 340906 366245 372434 387972 358186 380866 379770 396428 369427 390683 392491 415666 386777 403596 402016 421553 392283 408750 411309 428166 398647 422592 424475 457137 430668 450091 452569 473461 448051 474479 476881 501746 472791 501262 504307 522595 487690 471232 486278 526986

u can also find the values using the link and steps below

(ABS Catalogue Number: 52: National Accounts>>5206.0 Australian National Accounts: National Income, Expenditure and Product. >> data downloads >> Table 3. Expenditure on Gross Domestic Product (GDP), Current prices Excel sheet)> Data1 sheet

https://bit.ly/2RQxS7c