Redo question 46 using the data for Ford.

Question 46

Using Chrysler’s data, compute r₁, the correlation coefficient between e_t and e_t-1, for the error terms computed in Chrysler’s regression model.

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