Exhibit 10.7
The information below is used for the following questions.
An investor wants to classify companies as being a High Risk Investment, Group 1, a Medium Risk Investment, Group 2, or a Low Risk Investment, Group 3. He has gathered Liquidity, Profitability data on 18 companies he has invested in and produced the following spreadsheet. The following Discriminant Analysis output using Analytic Solver Platform has also been generated. 
-Refer to Exhibit 10.7. What formulas should go in cells C22:D24 of the spreadsheet?
Definitions:
Logarithm
The inverse operation to exponentiation, indicating the power to which a base number must be raised to produce a given number.
Logarithm
The exponent to which a base must be raised to produce a given number, expressing the relationship between a geometric progression and an arithmetic progression.
Calculator
An electronic device or software used for performing mathematical operations.
Inverse Function
A function that reverses the effect of the original function, such that applying both the function and its inverse will return the original input.
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