Discriminant Models Often Ignore Hard-To-Quantify Factors in the Credit Decision

question 117

True/False

Discriminant models often ignore hard-to-quantify factors in the credit decision.

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Definitions:

Main Effects

The direct impact of an independent variable on a dependent variable in an experimental design.

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables on a dependent variable, allowing interaction effects to be assessed.

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effects on dependent variables.

Interaction Effects

The influence that the combination of two or more independent variables has on a dependent variable, beyond their individual effects.