+8 The growth in bad-debt expense for Chadha and Chadha Company over the last 20
years is as follows.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
0.11 0.09 0.08 0.08 0.1 0.11 0.12 0.1 0.07 0.09
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.08 0.05 0.04 0.08 0.5 0.01 0.4 0.03 0.11 0.13
a) With the help of different statistical tools discuss the financial health of the
company.
b) Assume that you are a branch manager with a leading bank and if the Chadha
and Chadha Company’s Managing Director approaches you with a funding
request for its expansion plan, what will be your decision? Justify your
decision based on your statistical analysis.
