Y = Bo + B1X1 + BzX2 + B3X3 + BAX4 + & equation (1) Where, Y = Demand forin formal finance (Informal finance is undertaken through private contracts for the launching of new businesses or to fuel business operations when official banks are not available.) X1 = Cultural fractionalization (Cultural fractionalization refers to individuals within a country belonging to many different cultures) X2 = Sizeofthe firm X3 = Firmage X4 = Threeyearsofgrowthinthe firm'srevenues The estimated equation is as follows Y = 0.982 + 2.783X, - 0.148X2 - 0.010X3 - 1.973X4 equation (2) Standard Error (0.521) (0.905) (0.804) (0.341) (0.681) R2 = 0.0711; Number of observations = 70 a. State the assumptions that researcher has imposed to estimate equation (1) to get unbiased estimators. (6 Points) Find the independent variable(s) from equation 2 which are affecting the demand for informal finance significantly at 1%? (7 Points) C. Explain the reasons why the variable(s) of part b affects the demand for informal finance significantly? (6 Points) d. Calculate adjusted R2. What adjusted R explains? (6 Points)