According to the Altman model,multiple discriminant analysis indicates that those applicants with a Z score below 2.7 have a significant probability of filing for bankruptcy within a year.

Question

Quizplus · Accepted Answer

According to the Altman model, applicants with a Z score below 2.7 are considered to be at a high risk of filing for bankruptcy within a year. Therefore, the statement is true.

According to the Altman Model,multiple Discriminant Analysis Indicates That Those