The data on imports, Gross domestic product (GDP) and Consumer Price Index (CPI) for the United States over the period of 1975-2005 is given in this table. Also, you fellow the model which is mentioned below.

In Imports, B + B2 In GDP, + 3 In CPI, + u = a. Estimate the parameters of this model using the data given in the table. b. Do you suspect that there is multicollinearity in the data? c. Regress: (1) In Imports, = A1 + A2 In GDP, (2) In Imports, B + B In CPI, = (3) In GDP, = C + C In CPI, On the basis of these regressions, what can you say about the nature of mul- ticollinearity in the data? Year CPI GDP Imports Year CPI GDP Imports 1975 53.8 1,638.3 98185 1991 1976 56.9 1,825.3 124228 136.2 1992 140.3 5,995.9 491020 6,337.7 536528 1977 60.6 2,030.9 151907 1993 144.5 6,657.4 589394 1978 65.2 2,294.7 176002 1994 148.2 7,072.2 668690 1979 72.6 2,563.3 212007 1995 152.4 7,397.7 749374 1980 82.4 2,789.5 249750 1996 156.9 7,816.9 803113 1981 90.9 3,128.4 265067 1997 160.5 8,304.3 876470 1982 96.5 3,225.0 247642 1998 163.0 8,747.0 917103 1983 99.6 3,536.7 268901 1999 166.6 9,268.4 1029980 1984 103.9 3,933.2 332418 2000 172.2 9,817.0 1224408 1985 107.6 4,220.3 338088 2001 177.1 10,128.0 1145900 1986 109.6 4,462.8 368425 2002 179.9 10,469.6 1164720 1987 113.6 4,739.5 409765 2003 184.0 10,960.8 1260717 1988 118.3 5,103.8 447189 2004 188.9 11,712.5 1472926 1989 124.0 5,484.4 477665 2005 195.3 12,455.8 1677371 1990 130.7 5,803.1 498438