Z score

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A multivariate formula, devised by Edward I. Altman in 1968, that attempts to measure the susceptibility of a business to failure. It is computed by applying beta coefficients to a number of selected ratios taken from an organization's final accounts using the technique of multiple discriminant analysis. A UK-based version was introduced by Richard J. Taffler in 1983.

Subjects: Economics — Business and Management.

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