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. Using the link given below, download the data on the following two variables from the Australian Bureau of Statistics (ABS) website and answer the questions 1-6.

Data link:

https://bit.ly/2RQxS7c

(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

1. Download data (in excel format) for PRIVATE GROSS FIXED CAPITAL FORMATION - MACHINERY AND EQUIPMENT (GFCF) and GROSS DOMESTIC PRODUCT (GDP) for the period March 1986 to December 2020 from the above website to carry out Tasks 2-6. Display a screenshot of first 10 rows of the dataset.

2. Using appropriate graphical descriptive techniques (in Excel):

(a) describe the movements of two data series GFCF and GDP.

(b) analyse the relationship between the two variables, GFCF and GDP.

3. Using appropriate numerical descriptive methods (in Excel):

(a) summarize the above two data series, GFCF and GDP.

(b) comment on the strength and the direction of the relationship between GFCF and GDP.

4. 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).

5. 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.