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Financial analysts specializing in credit markets are often interested in creating models to predict whether a firm will go bankrupt within some fixed period of time. If there is a good chance that a particular firm will go bankrupt, then the firm will have to pay a very high interest rate on any debt (bonds) that it may issue. In practice, statistical models to predict bankruptcy are fairly difficult to construct. One of the variables that may be useful in distinguishing between firms that go bankrupt and firms that stay solvent is the return on assets (ROA). The accompanying file Bankruptcy.xlsx contains financial data for a sample of 44 firms. Of these 44 firms, 20 firms went bankrupt within 1 year after the data were collected; the other 24 firms remained solvent after 1 year. For this assignment, ignore all financial measures other than ROA. For the purpose of this exercise we will assume that firms' ROA is, in general, normally distributed. a. Using R, calculate the mean and standard deviation for ROA b. Using R, calculate the mean and standard deviation for ROA of firms that remained solvent c. Using R, calculate the mean and standard deviation for ROA of firms that went bankrupt within 1 year. d. Construct a 90% confidence interval for the average ROA of firms that remained solvent. State the confidence interval in the two forms: point estimate margin of error and [lower limit, upper limit]. Interpret the confidence interval within the context of the problem. e. Construct a 90% confidence interval for the average ROA of firms that went bankrupt. State the confidence interval in the two forms: point estimate margin of error and [lower limit, upper limit]. Interpret the confidence interval within the context of the problem. CASH DEBT 0.58 0.12 -0.23 0.48 0.16 0.07 -0.07 0.14 0.15 -0.14 0.20 0.19 0.07 0.38 -0.02 0.37 0.29 0.06 -0.07 0.22 -0.08 -0.14 0.56 -0.45 0.47 -0.33 0.54 -0.28 0.17 0.14 0.08 0.51 0.15 0.15 -0.10 0.01 0.32 -0.28 -0.10 0.31 0.12 0.01 0.04 0.05 ROA 0.04 0.11 -0.30 0.09 0.05 0.02 -0.09 -0.03 0.05 -0.07 0.08 0.05 -0.01 0.11 0.02 0.11 0.06 0.02 -0.06 0.08 -0.08 -0.14 0.11 0.41 0.14 -0.09 0.11 -0.27 0.07 0.07 0.02 0.10 0.05 0.06 -0.01 0.00 0.07 -0.23 -0.09 0.05 0.05 0.00 0.01 0.03 CURRENT 5.06 1.14 0.33 I .24 2.31 1.31 1.45 0.46 1.88 0.71 1.99 2.25 1.37 3.27 2.05 1.99 I .84 1.01 1.37 2.35 1.51 1.42 4.29 1.09 2.92 3.01 2.33 1.27 1.80 2.61 2.01 2.49 2.17 2.23 2.50 1.26 4.24 1.19 1.56 4.45 2.52 2.15 1.50 1 .68 ASST SLS 0.13 0.17 0.18 0.18 0.201 0.25 0.26 0.26 0.27 0.28 0.30 0.33 0.34 0.35 0.35 0.38 0.381 0.40 .42 0.431 0.44 0.45 0.45 0.47 0.48 0.51 0.52 0.52 0.53 0.54 0.55 0.56 0.58 0.60 0.63 0.66 0.67 0.69 0.691 0.70 0.71 0.95 BANKRUPT No Yes Yes No No Yes Yes No Yes Yes No No Yes No No Yes No Yes Yes No Yes Yes No Yes No No No Yes No No No No No No No Yes No Yes Yes No No Yes Yes Yes