Researchers have developed statistical models based on financial ratios that predict whether a company will go...

Researchers have developed statistical models based on financial ratios that predict whether a company will go bankrupt over the next 12 months. In a test of one such model, the model correctly predicted the bankruptcy of 85% of firms that did in fact fail, and it correctly predicted nonbankruptcy for 74% of firms that did not fail. Suppose that we expect 8% of the firms in a particular city to fail over the next year. Suppose that the model predicts bankruptcy for a firm that you own. What is the probability that your firm will fail within the next 12 months? SOLVE SHOWING PROBABILITY TREES

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orchestra answered 1 year ago

Empirical probability: A statistical model was developed to predict whether passengers on the Titanic ship survived...

Empirical probability: A statistical model was developed to predict whether passengers on the Titanic ship survived base on their information such as age, number of siblings and spouses were on the ship, sex, the fare class, etc. The table below presents the predicted results getting from the model compared with the actual record: Predicted survived Predicted not survived Actually survived 2245 280 Actually not survived 157 1137 If picking a random passenger, what is the probability that the passenger survived...

Based purely on Financial Ratios, recommend whether it is better for the company to borrow the...

Based purely on Financial Ratios, recommend whether it is better for the company to borrow the AUD 10 Million or issue AUD 10 Million new shares. Current Ratio (a/b) = 1,405/194 = 7.24 Interest coverage Ratio (d/c) = 84,932/22,530 = 3.77 PE ratio (f/e) = 74.14/ -08 = - 927 = 0 (not applicable) ROE (g/h*100) = 19,780/944*100 = -20.95%

For the company Amazon, go to their financial statements and compute several ratios of your choice....

For the company Amazon, go to their financial statements and compute several ratios of your choice. What do these ratios tell you about the company? Include a link to these financial statements in your post.

Q1 .Researchers at GSK pharmaceutical company claims that they have developed a potential “candidate” drug to...

Q1 .Researchers at GSK pharmaceutical company claims that they have developed a potential “candidate” drug to cure coronavirus infection. Using an experimental research design, explain how this drug should be tested in the clinical trials in order to ensure its safety and effectiveness.

Researchers want to examine whether or not weight can predict systolic blood pressure. They collect weight...

Researchers want to examine whether or not weight can predict systolic blood pressure. They collect weight in pounds and blood pressure measurements for 31 adult men. For your convenience, I have prepared an Excel file with the data : Weight Systolic Blood Pressure 162 134 163 149 167 128 168 129 173 128 173 118 174 133 175 138 184 143 184 147 185 144 218 137 186 149 188 137 235 138 189 150 189 128 194 153 195...

What industry can the following 2 companies be in based on financial ratios and why Company...

What industry can the following 2 companies be in based on financial ratios and why Company A Company B P/E Ratio: 30 Price/Sales: 6 Price/Book Value of Equity: 7.5 Profit Margin: 20% Operating Margin: 25% Return on Assets (ROA): 6% Return On Equity (ROE): 25% Current Ratio: 3 P/E Ratio: 17 Price/Sales: 0.6 Price/Book Value of Equity: 3 Profit Margin: 3% Operating Margin: 5% Return on Assets (ROA): 7% Return On Equity (ROE): 15% Current Ratio: 1

Choose a publicly traded company and analyze the financial statements based on the various ratios discussed...

Choose a publicly traded company and analyze the financial statements based on the various ratios discussed in concept 5 (leverage, debt to equity, liquidity ratios, etc.). Provide an overview of how financially healthy the company is and predictions for the future of the company.

Market value ratios Ratios are mostly calculated based on the financial statements of a firm. However,...

Market value ratios Ratios are mostly calculated based on the financial statements of a firm. However, another group of ratios, called market-based ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements. Consider the case of Blue Dog Manufacturing Corp.: Blue Dog Manufacturing Corp. just reported a net income of $8,000,000, and its current stock price is $17.50 per share. Blue Dog is forecasting an increase...

Calculate the following ratios and provide an analysis of the company based on the ratios from...

Calculate the following ratios and provide an analysis of the company based on the ratios from the financial statements provided. Days Sales Outstanding - answer Profit Margin - answer Asset Turnover - answer Return on Assets - answer Financial Leverage - answer Return on Equity - answer PPE Turnover - answer Total Liabilities to Equity - answer Times Interest Earned - answer SILVER CLOUD COMPUTING Income Statements For the Years Ended February 28, 2018 and 2017 fye 2/28/2018 fye 2/28/2017...

A statistical program is recommended. The owner of a movie theater company would like to predict...

A statistical program is recommended. The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow. Weekly Gross Revenue ($1,000s) Television Advertising ($1,000s) Newspaper Advertising ($1,000s) 96 5 1.5 91 2 2 95 4 1.5 93 2.5 2.5 95 3 3.2 94 3.5 2.2 94 2.5 4.1 94 3 2.5 (a) Use α = 0.01 to test the hypotheses H0: β1 =...

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