# Redo question 42 using the data for the auto industry. Question 42 Estimate the regression of Chryslers

## Question:

Redo question 42 using the data for the auto industry.

**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 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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**Related Book For**

## Statistics For Business And Financial Economics

**ISBN:** 9781461458975

3rd Edition

**Authors:** Cheng Few Lee , John C Lee , Alice C Lee