XII.

Relationship between Z score and H score

To find out the relationship between Z score and H score the correlation analysis is performed. Table 23 Correlation Z and H Scores Correlation Z H Z H 1.000 0 0.810 1.0000 8

Table23 represents the correlation between Z and H Scores. From that table, it is clear that Z and H Scores are highly correlated (positively) with correlation coefficient of 0.811 and there is no negative relationship. This indicates that both Fulmer model and Springate model predict the solvency of the companies in a similar fashion.