Forbes gives, each year, the same variables listed in Table 9.1 for the chemical industry. The changes in lines of business and company mergers resulted in a somewhat different list of chemical companies in 1982. We have selected a subset of 13 companies that are listed in both years and whose main product is chemicals. Table 9.10 includes data for both years

(Forbes, vol. 127, no. 1 (January 5, 1981) and Forbes, vol. 131, no. 1 (January 3, 1983)). Do a forward stepwise regression analysis, using P/E as the dependent variable and ROR5, D/E, SALESGR5, EPS5, NPM1, and PAYOUTR1 as independent variables, on both years’ data and compare the results. Note that this period showed little growth for this subset of companies, and the variable(s) entered should be evaluated with that idea in mind.