Question

Click the following link to access the Module 4 data set to answer the following requirements: Module 4 data set a. Compute Z-Scores for for all S & P retailers for all years in the data set. Retailers have 3-digit NAICS codes from 443 to 454 inclusive. Estimate EBIT as: Pretax income + Interest and related expenses. b. Use a data visualization package such as Power BI or Tableau to display the Z-Score for fiscal 2018 for all firms. Which firm has the highest Z-Score in 2018?

Answer 1

To compute the Z-scores for S & P retailers, identify the relevant retailers, calculate EBIT, and determine the Z-score. Use a data visualization package to find the firm with the highest Z-score in 2018.

Step-by-step explanation:

To compute the Z-scores for all S & P retailers for all years in the data set, you need to follow these steps:

1. Identify the retailers with 3-digit NAICS codes from 443 to 454.
2. Calculate the EBIT (Earnings Before Interest and Taxes) for each year using the formula: EBIT = Pretax Income + Interest and Related Expenses.
3. For each retailer and year, calculate the Z-score using the formula: Z-score = (EBIT - Mean EBIT) / Standard Deviation EBIT.

To find the firm with the highest Z-score in 2018, use a data visualization package like Power BI or Tableau to plot the Z-scores for all firms and identify the one with the highest value.