Redo question 42 using the data for GM.

Question 42

Estimate the regression of Chrysler’s return on assets against its debt/equity ratio. Compute the Durbin–Watson statistic. Does autocorrelation exist?

Use MINITAB and the Above information to answer question. To find out whether there is a relationship between the amount of financial leverage a firm uses and the return on the firm’s assets, you collect information on the debt/equity ratio and return on assets for the “big three” automakers and the average for the auto industry.

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Year Chrys. Ford GM Indus. Debt/equity ratio 69 1.23 .76 .45 .74 70 1.23 .81 .44 .79 71 1.20 .89 .69 .91 72 1.21 .95 .56 .89 73 1.24 1.02 .62 .92 777 74 1.53 1.27 .63 1.09 75 1.60 1.21 .66 1.10 76 1.51 1.22 .70 1.08