Student Activity: Toward a More Sustainable Campus through Innovative Design and Practical Application
On 31 October 2022, The business Administration Department performed a seminar on
Using Discriminant Analysis for Building a model to predict corporate financial failure. The seminar was delivered by Prof. Dr. Obaid Mahmmood Mohsin, Lecturer of Statistics at the Business Administration Department.
The seminar focused on and compared two models. The first model is the Altman model of financial failure, and, the second is a newly constructed model; this new special model for predicting financial failure is based on the discriminant between two groups. The comparison concluded that the model that is built with the Altman model in terms of the possibility of classification and predicting failure for companies found a rating ratio of %88 percentage. Further, while rating ratio of the classification for the constructed model is %94.12 percent. Consequently, it was proved that the constructed model provides a clearer preference for the constructed model compared to the Altman model.
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