Univariate Bankruptcy Prediction Models Help Identify Factors Related to Bankruptcy,but

question 75

Multiple Choice

Univariate bankruptcy prediction models help identify factors related to bankruptcy,but they do not provide information about:

• A) specific ratios that are important.
• B) the amount of Type I and Type II errors.
• C) which specific company will go bankrupt.
• D) the relative importance of individual financial statement ratios.

Differentiate between types of collateral as classified in the Code.

Recognize the legal remedies and rights available to sureties.

Appreciate the implications of buying property with existing security interests or mortgages.

Understand the types of bonds and their purposes in securing obligations.

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Definitions:

Standard Deviation

A measure of the extent to which a set of scores vary on either side of their mean value. The square root of variance. See also standard error.

Individual Score

The specific performance or result attained by an individual in an assessment or evaluation.

Dependent Samples

Pairs or groups of observations in a study that are related or matched in some way.

Normal Curve

Curve resulting from the plot of values with a normal distribution. It is often called a bell curve because of its shape.