Using detailed cash-flow information, a financial analyst claims to be able to spot companies that are likely

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Using detailed cash-flow information, a financial analyst claims to be able to spot companies that are likely candidates for bankruptcy. The analyst is presented with information on the past records of 15 companies and told that, in fact, 5 of these have failed. He selects as candidates for failure 5 companies from the group of 15. In fact, 3 of the 5 companies selected by the analyst were among those that failed. Evaluate the financial analyst's performance on this test of his ability to detect failed companies.
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Statistics For Business And Economics

ISBN: 9780132745659

8th Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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