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Using R-Studio, estimate a regression equation to determine the effect of the real interestrates, the exchange rate and the GDP growth rate on the Merchandise

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Using R-Studio, estimate a regression equation to determine the effect of the real interestrates, the exchange rate and the GDP growth rate on the Merchandise trade (% of GDP). (Allcodes and regression output should be provided). NOTE: R-Studio should only be used forobtaining the regression output and the regression equation.1. Write down the regression equation.2. Interpret the coefficients and determine which of the individual coefficients in theregression model are statistically significant. In responding, construct and test anyappropriate hypothesis.3. Interpret the coefficient of determination.4. Using the 5% level of significance, determine and discuss whether the overall regressionequation is statistically significant. In responding, construct and test any appropriatehypothesis.5. Determine and interpret the confidence interval for the independent variable(s).

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Year Merchandise Real interest GDP growth Official exchange trade (* of GDP) rates (96) (annual 96 rate (per USS) 2000 150.28 10.05 -1.36 182.43 2001 149.12 16.63 2.28 187.32 2002 144.60 13.36 1.13 190.67 2003 146.56 9.81 -0.63 193.88 2004 157.91 7.27 1.56 198.31 2005 162.57 6.42 -1.95 199.88 2006 62.06 -58.33 5.13 200.19 2007 63.64 5.91 7.19 202.35 2008 69.65 4.44 1.61 203.63 2009 60.78 13.53 3.88 203.95 2010 66.33 9.78 3.78 203.64 2011 78.56 11.91 5.34 204.02 2012 84.00 8.83 5.38 204.36 2013 77.98 14.11 3.65 205.39 2014 71.66 15.26 1.69 206.45 2015 61.75 9.54 0.69 206.50 2016 64.45 11.99 3.81 206.50 2017 64.89 10.67 3.73 206.50 2018 79.10 16.36 4.44 207.72 2019 108.37 7.30 5.35 208.50

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