Question: When using altman's z-score a type i error occurs when: 1) the company's z-score indicates the company will go bankrupt, and the company stays healthy.

When using altman's z-score a type i error occurs when:

1) the company's z-score indicates the company will go bankrupt, and the company stays healthy.

2) the company's z-score indicates the company will go bankrupt, and the company stays bankrupt.

3) the company's z-score indicates the company is healthy, and the company stays healthy.

4) the company's z-score indicates the company is healthy, and the company goes bankrupt.

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