Question: Using Bankruptcy project dataset perform a two-sample t-test for the variables below comparing healthy and distressed firms: gempl = Employee Growth Rate opita = Operating

Using Bankruptcy project dataset

  1. perform a two-sample t-test for the variables below comparing healthy and distressed firms:

gempl = "Employee Growth Rate"

opita = "Operating Income to Assets"

Explain results.

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

  1. 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 from finance theory?

(b) Find and discuss the marginal effects

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

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