The Index -2LL

question 1

Multiple Choice

The index -2LL:

• A) Is a probability that can range from .00 to 1.00
• B) Is the transformed value of the log odds
• C) Is used as a basis for assessing the fit of the overall model, in the likelihood ratio test
• D) Increases in value as the goodness-of-fit of the model increases

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Definitions:

Interest Expense

The expenses an entity bears over a period for using borrowed capital.

Short-term Creditors

refers to entities or individuals that lend money or extend credit for short periods, typically less than a year, including suppliers and banks.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value, indicating the ability of an entity to meet its short-term obligations.

Price-Earnings Ratio

A measurement that contrasts a firm's stock price with its earnings per share to determine if its shares are valued appropriately.