Exhibit 10.7
The information below is used for the following questions.
An investor wants to classify companies as being a High Risk Investment, Group 1, a Medium Risk Investment, Group 2, or a Low Risk Investment, Group 3. He has gathered Liquidity, Profitability data on 18 companies he has invested in and produced the following spreadsheet. The following Discriminant Analysis output using Analytic Solver Platform has also been generated.
-Refer to Exhibit 10.7. Based on the 18 observations in the model complete the following confusion/classification matrix.

Question

Exhibit 10.7
The information below is used for the following questions.
An investor wants to classify companies as being a High Risk Investment, Group 1, a Medium Risk Investment, Group 2, or a Low Risk Investment, Group 3. He has gathered Liquidity, Profitability data on 18 companies he has invested in and produced the following spreadsheet. The following Discriminant Analysis output using Analytic Solver Platform has also been generated.     
-Refer to Exhibit 10.7. Based on the 18 observations in the model complete the following confusion/classification matrix.

Quizplus · Accepted Answer

The Answer of Exhibit 10.7
The information below is used for the following questions.
An investor wants to classify companies as being a High Risk Investment, Group 1, a Medium Risk Investment, Group 2, or a Low Risk Investment, Group 3. He has gathered Liquidity, Profitability data on 18 companies he has invested in and produced the following spreadsheet. The following Discriminant Analysis output using Analytic Solver Platform has also been generated.     
-Refer to Exhibit 10.7. Based on the 18 observations in the model complete the following confusion/classification matrix.

Exhibit 10.7 The Information Below Is Used for the Following Questions