____ is the statistical technique that helps the analyst classify observations (firms) into two or more predetermined groups based on certain characteristics of the observation.
A) Deterministic analysis
B) Sensitivity analysis
C) Discriminant analysis
D) Optimization

Question

Quizplus · Accepted Answer

Discriminant analysis is a statistical technique used to classify observations (firms) into two or more predetermined groups based on certain characteristics of the observation. It is commonly used in financial analysis to classify firms into different risk categories or to assess their creditworthiness. Deterministic analysis, sensitivity analysis, and optimization are other statistical techniques that may be used in financial analysis, but they are not specifically designed for classification purposes.

____ Is the Statistical Technique That Helps the Analyst Classify