Gross Domestic Product
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.