Question: 4. Using the Simple Linear Regression technique. (a) develop a model to explain the relationship between GFCF and GDP. Explain the reason for your choice

4. Using the Simple Linear Regression technique. (a) develop a model to explain the relationship between GFCF and GDP. Explain the reason for your choice of the dependent and independent variables of your model. (b) estimate the model you proposed in 4(a) using Excel. (c) interpret the estimated coefficients you obtained in 4(b). (7 marks) 5. Applying appropriate statistical techniques, (a) test whether the linear relationship between Gross Fixed Capital Formation - Machinery and Equipment and Gross Domestic Product you estimated in Q4 is significant (use of = 0.05). (Hint: display 6 steps process in relation to this test). (b) assess the fitness of the estimated model you have estimated in Q4

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