Which of the Following Statements in Relation to Altman's Discriminant

question 27

Multiple Choice

Which of the following statements in relation to Altman's discriminant function is true?

• A)The higher the Z-score the higher the probability of default.
• B)The loan size does not influence the result of the Altman Z-score model.
• C)The size of the borrower does not influence the result of the Altman Z-score model.
• D)The Altman Z-score model always produces an exact reject or accept decision.

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Definitions:

Process of Adjustment

The psychological and behavioral process by which individuals adapt to new conditions, circumstances, or environments.

Coping

The strategies or mechanisms individuals use to manage stress, adversity, or emotional distress.

Experimental Group

The subjects in an experiment who receive some special treatment in regard to the independent variable.

Dependent Variable

The variable in an experiment that is observed and expected to change as a result of manipulations in the independent variable.