Question 3 covers learning outcome 5 ( 40 marks 800 words) V Pacific, a financial institution in Vietnam wishes to measure the relationship between the change in the interest rates in a given period (it) and the change in the inflation rate in the previous period ( NFt1 ); that is, the financial institution wishes to assess the lagged impact of inflation on interest rates. The following data over the last 20 years period is given. Required: (a) Using Microsoft Excel apply regression analysis on the data. Present all the results. (10 marks) (b) Based on the results give a detailed analysis and a critical discussion on the findings. (25 marks) (c) What are the limitations when regression analysis is used to forecast