International Monetary Fund (IMF) believes the hourly wage of consumers in countries affects cost of goods. To get a better perspective, it

uses Big Mac which is a popular fast food in many countries and so an indicator to test this claim. Below are the price of Big Mac in select countries and the average hourly wage of the countries in dollar terms.

Big Mac price is your dependent variable and net hourly wage is the independent variable.

Use the information provided below to answer questions A-F

Country	Big Mac Price (U.S. $) -Y	Net Hourly Wage (U.S. $)- X
Australia	3.74	23.58
Austria	3.89	24.11
Canada	5.01	22.84
Chile	4.33	12.34
Czech Republic	3.5	12.11
Denmark	4.59	24.77
Estonia	3.6	11.67
France	5.33	21.01
Hungary	3.04	10.87
Israel	4.51	16.95
Japan	3.31	19.67
Mexico	2.55	7.38
New Zealand	4.07	19.28
Poland	2.71	13.09
Portugal	3.69	12.28
South Korea	3.91	16.95
Sweden	5.47	20.37
Switzerland	6.58	29.99
United Kingdom	4.5	21.08
United States	5.31	29.28
Algeria	2.21	6.87
Nigeria	1.98	5.88
Brazil	4.1	12.18
South Africa	4.23	15.54

a) Find the correlation coefficient? Interpret your results.

b) Find the coefficient of determination. Interpret the results.

c) What is the linear regression model?

d)Predict the price of Big Mac in Germany if the hourly wage for the country is $25.45.

e)At 5% level of significant, can we predict that there is a significant relationship between Big Mac price and net hourly wage?

Please use excel to solve this problem and display formulas.