Exhibit 10.6 The Information Below Is Used for the Following Questions

question 37

Essay

Exhibit 10.6
The information below is used for the following questions.
An investor wants to classify companies as being either a good investment, Group 1, or a poor investment, Group 2. He has gathered Liquidity, Profitability and Activity data on 18 companies he has invested in and run a regression analysis. Discriminant Analysis output has also been generated. The data for the problem and the relevant output are shown below. ​ ​ ​ ​ ​ ​
-Refer to Exhibit 10.6. Compute the discriminant score and predicted group for a company with Liquidity = 0.80, Profitability = 0.27 and Activity = 1.55.

---

Definitions:

Specific Date

A particular day specified for an event or deadline, clearly identified by a combination of day, month, and year.

Public Law 95-109

The Fair Debt Collection Practices Act of 1977, a United States federal law that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.

Fair Debt Collection Practices Act

A federal law in the United States that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.

Unpaid Debts

Financial obligations that have not been settled or paid by the due date.