Which of the Following Statements Is Incorrect

question 115

Multiple Choice

Which of the following statements is incorrect?

• A)While linear probability models divide firms into high or low bankruptcy risk classes, logit models and linear discriminant models produce a value for the expected probability of bankruptcy.
• B)The logit model overcomes a weakness of the linear probability model by restricting the estimated range of bankruptcy probabilities to lie between 0 and 1.
• C)All three credit scoring models use past data, such as financial ratios, as inputs to explain repayment experiences on old debt.
• D)All of these statements are correct.

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Definitions:

Skin

The soft outer covering of vertebrates, serving as a protective barrier against environmental hazards and regulating body temperature.

Mensuration

The process of measuring.

Height And Weight

Physical measurements that provide important indicators of an individual's health and nutritional status.

Measuring Process

The act or method of determining the size, quantity, or degree of something.