Description

How does Gross Domestic Product (GDP) affect currency exchange rates? One way to answer such a question is by using regression analysis. Complete the following:

Download the dataset GDP.xls (Links to an external site.) from the course website.

Using R, create a scatter plot for GDP vs. US/EUR. Comment on the relationship.

Fit a linear regression model.

How good is the fit of the model from part c?

Describe how you can predict US/EUR exchange rate?

Copy and paste the R outputs into a Word document and label each section clearly. If you take a screen shot make sure that it shows the current date. Additionally, ensure you have answered all of the questions.