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Based on the information below: Describe the data sources and the methodology you used to test UIP. Explain how you collected and analyzed data, and

Based on the information below:

  • Describe the data sources and the methodology you used to test UIP.
  • Explain how you collected and analyzed data, and why you chose this approach image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline A & B & C & D & E & F & G & H & 1 & J & K \\ \hline 1 Jate & USD/CAD & USA Interest Rate & CAN Interest rate & Predicted exchange rate & Actual exchange rate & & & & & \\ \hline 1/1/04 & 1.3250 & 4.2742 & 4.5796 & 0.9971 & 1.0684 & & & & & \\ \hline 1/1/05 & 1.2402 & 4.2900 & 4.0669 & 1.0021 & 1.0891 & & & & & \\ \hline 1/1/06 & 1.1387 & 4.7917 & 4.2078 & 1.0056 & 0.9689 & & & & & \\ \hline 1/1/07 & 1.1752 & 4.6292 & 4.2698 & 1.0034 & 1.1737 & & & & & \\ \hline 1/1/08 & 1.0013 & 3.6667 & 3.6053 & 1.0006 & 0.8102 & & & & & \\ \hline 1/1/09 & 1.2359 & 3.2567 & 3.2306 & 1.0003 & 1.1572 & & & & & \\ \hline 1/1/10 & 1.0680 & 3.2142 & 3.2351 & 0.9998 & 1.0656 & & & & & \\ \hline 1/1/11 & 1.0023 & 2.7858 & 2.7830 & 1.0000 & 0.9999 & & & & & \\ \hline 1/1/12 & 1.0024 & 1.8025 & 1.8734 & 0.9993 & 1.0002 & & & & & \\ \hline 1/1/13 & 1.0022 & 2.3508 & 2.2620 & 1.0009 & 0.8984 & & & & & \\ \hline 1/1/14 & 1.1156 & 2.5408 & 2.2308 & 1.0030 & 0.8763 & & & & & \\ \hline 1/1/15 & 1.2731 & 2.1358 & 1.5217 & 1.0060 & 0.9108 & & & & & \\ \hline 1/1/16 & 1.3978 & 1.8417 & 1.2518 & 1.0058 & 1.0669 & & & & & \\ \hline 1/1/17 & 1.3102 & 2.3300 & 1.7837 & 1.0054 & 1.0621 & & & & & \\ \hline 1/1/18 & 1.2336 & 2.9100 & 2.2779 & 1.0062 & 0.9387 & & & & & \\ \hline 1/1/19 & 1.3141 & 2.1442 & 1.5889 & 1.0055 & 0.9947 & & & & & \\ \hline 1/1/20 & 1.3211 & 0.8942 & 0.7531 & 1.0014 & 1.0341 & & & & & \\ \hline 1/1/21 & 1.2776 & 1.4425 & 1.3588 & 1.0008 & 1.0013 & & & & & \\ \hline 1/1/22 & 1.2759 & & & & & & & & & \\ \hline 21 & & & & & & & & & & \\ \hline 22 & & & & & & & & & & \\ \hline 23 & & & & & & & & & & \\ \hline \end{tabular} Ready Accessibility: Good to go Actual Exchange Rate Change Scatterplot with Regression Line Histogram of Residuals [1] Standard Errors assume that the covariance matrix of the errors is correctly specified

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