Which of the Following Is Altman's Conventional Z-Score Model for Publicly

question 6

Multiple Choice

Which of the following is Altman's conventional Z-score model for publicly traded manufacturing firms?

• A) Z = 0.717(X1) + 0.847(X2) + 3.107(X3) + 0.420(X4) + 0.998(X5)
• B) Z = 1.4(X1) + 0.847(X2) + 3.3(X3) + 1.05(X4) + 0.998(X5)
• C) Z = 6.65(X1) + 3.26(X2) + 6.72(X3) + 1.05(X4)
• D) Z = 1.2(X1) + 1.4(X2) + 3.3(X3) + 0.6(X4) + 0.999(X5)

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Definitions:

Demand Function

A mathematical representation showing the relationship between the quantity of a good that consumers are willing to buy and its price, along with other factors like income and prices of related goods.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Marginal Cost

The additional charge associated with manufacturing an extra unit of a product or service.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.