1. Given the regression model Trade = B. + B, Export + B.Import + B,ER+ B.Tariff + B,Cost + E where: Trade - Trade flow of goods in a given country Export - Export of goods in that country Import - Import of goods by that country ER - Foreign exchange rate in that country, i.e, local currency/USD Tariff - Tariff rate for imported goods in that country Cost - Transport Transport cost of moving goods from goods from that country to a trading partner Bi - are parameters of the model & -random error term of the model State this regression model in matrix algebra using the expanded form. Specifically, show the elements of the matrices for this model, i.e., Y = X'B +E 1a. State the solution matrix of the above model: a. Show how the elements of the matrix was (XX) derived. b. Show how the elements of the matrix X'Y was derived State the final form of the solution matrix: B = (X'X)X'Y C. 1. Given the regression model Trade = B. + B, Export + B.Import + B,ER+ B.Tariff + B,Cost + E where: Trade - Trade flow of goods in a given country Export - Export of goods in that country Import - Import of goods by that country ER - Foreign exchange rate in that country, i.e, local currency/USD Tariff - Tariff rate for imported goods in that country Cost - Transport Transport cost of moving goods from goods from that country to a trading partner Bi - are parameters of the model & -random error term of the model State this regression model in matrix algebra using the expanded form. Specifically, show the elements of the matrices for this model, i.e., Y = X'B +E 1a. State the solution matrix of the above model: a. Show how the elements of the matrix was (XX) derived. b. Show how the elements of the matrix X'Y was derived State the final form of the solution matrix: B = (X'X)X'Y C