Question
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
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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