Which variable has the LARGEST weight in Altman's Z-Score formula?

Question

BlackTom AI · Accepted Answer

The provided data for this question appears incomplete: there are no answer options listed to evaluate, so I cannot analyze each option as asked.

However, I can explain the underlying concept that the question references. In Altman's Z-Score model, particularly the version used for private manufacturing firms (the Z' score), the formula is typically a weighted sum of five financial ratios: X1, X2, X3, X4, and X5, with corresponding weights 1.2, 1.4, 3.3, 1.0, and 0.6 respectively. Among these, X3 (which is EBIT/Total assets) carries the largest weight, 3.3, meaning it has the greatest influence on the overall Z-Score calculation.

If there were multiple options, you would compare their stated weights to see which one corresponds to the 3.3 coefficient for X3. Because the question explicitly asks for the variable with the largest weight, and the standard Altman Z-Score model assigns 3.3 to X3, this would be identified as the correct choice in a typical multiple-choice setup.

Without the actual options, I can’t definitively label which option matches X3 with weight 3.3, but the canonical answer in the classic private firm Z-Score is that X3 (EBIT / Total assets) has the largest weight of 3.3.

BU.231.710.51.FA25 PoP Quiz - 1 (Week 4)

Which variable has the LARGEST weight in Altman's Z-Score formula?

查看解析

登录即可查看完整答案

类似问题

TB MC Qu. 08-14 If a company has an... If a company has an Altman Z-score of 1.7, the company would be classified in the:

Which statement about the Altman model to assess the probability of bankruptcy is correct?

Which of the following statements is correct?

A company with an Altman Z-score of 3.15 should not be granted a loan due to a high default probability.

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单