Which of the Following Are True Regarding Credit Scoring Systems

question 91

Multiple Choice

Which of the following are true regarding credit scoring systems?

• A) Lower scores are better than higher scores.
• B) Scoring systems are based on statistical studies.
• C) Credit unions calculate and sell credit scores to lenders.
• D) Females receive higher score than males.
• E) All of the above.

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Definitions:

Multiple Regression Analysis

An advanced statistical technique used to predict the outcome of a dependent variable based on the changes in multiple independent variables.

Independent Variables

Variables in an experiment or observational study that are manipulated or categorized to observe their effect on dependent variables.

Dependent Variable

The variable in a study or experiment that is expected to change in response to changes in the independent variable.

Multiple Regression Equation

An equation that models the linear relationship between a dependent variable and multiple independent variables.