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Table 14 Identification of Cutt-off Value for Re-estimated and Newly Proposed Model

From: Re-estimation and comparisons of alternative accounting based bankruptcy prediction models for Indian companies

Cut-off

Overall Correct Prediction

Type I Error

Type II Error

Altman’s re-estimated Model

0

96.923

1.538

4.615

0.2

92.308

1.538

13.846

0.3

91.538

1.538

15.385

0.4

90.000

1.538

18.462

Ohlson’s re-estimated Model

0.7

93.850

3.080

9.230

0.6

94.620

4.620

6.150

0.5

94.620

6.150

4.620

0.4

95.380

6.150

3.080

Zmijewski’s re-estimated Model

0.7

86.150

3.080

24.620

0.6

85.380

4.620

24.620

0.5

89.230

9.230

12.310

0.4

88.460

13.850

9.230

Newly proposed Model

0.7

98.460

3.080

0.000

0.6

98.460

1.540

1.540

0.5

97.690

1.540

1.540

0.4

97.690

1.540

3.080

  1. Source: Author’s estimation