INSTRUCTIONS1. Use the Pharmaceutical Sales data provided in

INSTRUCTIONS1. Use the Pharmaceutical Sales data provided in the handout to run all the possible regressions on Excel. Save the output tables for each of the equations estimated and print them out. 2. Write the R-square on the Excel template.3. Which equation is the best? Briefly explain what is the criterion you used (as explained in the handout) to arrive at that decision.4. In your own words, briefly explain the problem of multicollinearity: (a) what causes it and (b) what is the consequence in terms of regressions results in a multiple regression model?5. Use the example described in the handout (regressions tables with sign and the t-values of the regressions results) and illustrate the multicollinearity problem, and solution using the Pharmaceutical data. Pick any equation in 2-variable groupings to support your answer. Find the combination of 2 variable model in which at least one of the variables happens to have a bad t-statistics in the presence of the other variable but when run alone it is good