The Following Is an Example of a Credit Scoring Model

question 36

Multiple Choice

The following is an example of a credit scoring model to estimate the probability of debt rescheduling for country I: P_i= 0.25DSR_i+ 0.17IR_i- 0.03 INVR_i+ 0.84VAREX_i+ 0.93 MG_i
Where P_i is the probability of rescheduling country I's debt; DSR is the country's total debt service ratio; IR is the country's import ratio; INVR is the country's investment ratio; VAREX is the country's variance of export revenue; and MG is the country's rate of growth of the domestic money supply.
According to this model, An FI would be most likely to lend to a country with

• A)a low total debt service ratio.
• B)a high import ratio.
• C)a high investment ratio.
• D)a low variance of export revenue.
• E)a small rate of growth of the domestic money supply.

Explain the concepts of correlation and causation.

Understand how to interpret correlation coefficients and their implications for research findings.

Discriminate between different data collection techniques across research methods.

Analyze the ethical considerations in selecting research methods.

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Definitions:

Authentic Leadership

A leadership style centered on transparency, ethicality, and fostering trust, aimed at encouraging genuineness among leaders.

Follower Identification

The extent to which followers see themselves as being similar to, and aligned with, their leaders and the group.

Lowers Optimism

A state or condition where an individual's hopeful outlook or expectations about the future are diminished or reduced.

Transformational Leadership Model

A leadership approach that causes change in individuals and social systems, emphasizing vision, inspiration, challenge, and personal development.