Beaver, McNichols, and Rhie have developed the following model to predict the chance of failing during the next year relative to the chance of not failing for firms: log(relative chance of failure)= -6.445 - 1.192 ROA + 2.307 (liabilities/assets)- 0.346 (EBITDA/liabilities), using

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The given model is a hazard analysis model, as it predicts the probability of a firm failing in the next year based on certain financial ratios. Multiple discriminant analysis is a different statistical technique used for predicting group membership based on a set of predictor variables. Real options analysis is a financial technique used for evaluating investment decisions with uncertainties.

Beaver, McNichols, and Rhie Have Developed the Following Model to Predict