Simulations by Moody's Analytics Have Shown Which of the Following

question 43

Multiple Choice

Simulations by Moody's Analytics have shown which of the following models to be relatively better predictors of corporate failure and distress?

• A)Z score-type models.
• B)S&P rating changes.
• C)Expected Default Frequency (EDF) models.
• D)Linear probability models.
• E)Logit models.

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Definitions:

Cost Volume Profit Analysis

A financial modeling tool used to determine the effects of changes in costs and volume on a company's profits.

Sales Mix

The combination of products or services that a company sells, impacting its overall profitability.

External Factors

Elements outside a company that can impact its performance or operations, such as economic conditions, competition, and regulatory environment.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.