Using a Modified Discriminant Function Similar to Altman's,Burger Bank Estimates

question 16

Multiple Choice

Using a modified discriminant function similar to Altman's,Burger Bank estimates the following coefficients for its portfolio of loans:

Z = 1.4X₁ + 1.09X₂ + 1.5X₃
where X₁ = debt to asset ratio;X₂ = net income and X₃ = dividend payout ratio.

Using Z = 1.682 as the cut-off rate,what should be the debt to asset ratio of the firm in order for the bank to approve the loan?

• A)40.0 percent.
• B)46.5 percent.
• C)51.5 percent.
• D)54.0 percent.

Recognize the importance of reliability and validity in the diagnostic process.

Comprehend the concept and importance of dimensional classification in mental health.

Appreciate the need for considering cultural differences in the assessment and diagnosis of mental disorders.

Understand the historical changes in the DSM, including the removal of certain conditions and the reasons behind these changes.

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Definitions:

Grouping Benefit

The advantages that individuals gain by forming or being part of a group, such as increased protection from predators or enhanced foraging efficiency.

Somatosensory Cortex

The Somatosensory Cortex is a region of the brain responsible for processing sensory information from across the body, such as touch, temperature, and pain.

Burrowing Mammals

Mammals that dig or live in burrows in the ground as a means of protection from predators, temperature control, and for nesting.

Sensitive Facial Features

Physical characteristics of the face that are highly responsive to changes in emotional states or environmental stimuli.