Instructions: assignment by downloading the data and then answering the questions in this word document. Then submit it electronically. Go to the page in Blackboard where the assignment is posted, click on Browse and then attach the answer file. Click Submit to finish. Note: Blackboard submission is set only before the deadline. Late assignments can't be submitted.

1.Using "Bankruptcy" project dataset from Module 4 perform a two-sample t-test for the variables below comparing healthy and distressed firms:

gempl = "Employee Growth Rate"

lta= "Log of Assets".

Explain results.

Note: two sample t-test was discussed in Module 2 and Module 4 lecture notes

2. Using"Bankruptcy" project dataset from Module 4 perform logit analysis predicting probability of Bankruptcy:

(a) Estimate logit model with the following explanatory variables:tdta, gempl, opita, invsls, lsls. Discuss the sign of every coefficient in the model. Is it as expected?

(b) Find the percentage of correctly predicted cases for healthy and distressed firms.