All of the Following Are Factors Used by Altman's Z

question 40

Multiple Choice

All of the following are factors used by Altman's Z in predicting bankruptcy except:

• A) Working capital/Total assets
• B) Market value of stockholders' equity/Book value of total debt owed
• C) Retained Earnings/Total assets
• D) Income/Total equity

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Definitions:

Win%

A statistical representation, often in sports, denoting the percentage of games or matches won by a team or individual.

Residuals

Differences between observed values and the expected values predicted by a model, used as a diagnostic measure to assess the fit of a statistical model.

Least Squares

A method used in regression analysis to determine the best fit line by minimizing the sum of the squares of the differences between observed and predicted values.

Goals/G

A statistical measurement often used in sports to quantify the average number of goals scored per game by a team or player.