When a company cannot generate enough revenue to cover its financial obligations, especially loan payments to creditors, it is in a state of financial distress. This situation can ultimately lead to bankruptcy if it is severe and prolonged. As a market analyst, you are curious about the elements that can lead to a company's financial difficulties. To conduct the investigation, you obtain the data for the financial year 2022 from the Capital IQ database for US companies in the S&P500 Index. 

When it comes to forecasting a company's financial distress, which variable(s) has (have) significant impact(s)? Are the errors of the regression independent? .

Is the regression model useful?

Answer rating: 100% (QA)

As a market analyst investigating the elements that can lead to a companys financial difficulties you would typically perform a statistical analysis t... View the full answer