_______________ Is the Process of Quantifying the Likelihood of Default

question 136

Multiple Choice

_______________ is the process of quantifying the likelihood of default when granting consumer credit based on objective characteristics of the buyer.

• A) Credit scoring.
• B) Credit rationalization.
• C) Receipts assessment.
• D) Payables risk analysis.
• E) Disbursement specialization.

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Definitions:

Process Characteristic

A feature or attribute that can be measured or quantified to assess the performance of a process.

Normal Distribution

A type of continuous probability distribution for a real-valued random variable, symmetrical and described by its mean and standard deviation.

Capability Index

A statistical measure that quantifies the ability of a process to produce output within specified limits.

Compressive Strength

The capacity of a material or structure to withstand loads that reduce the size, expressed typically in pounds per square inch (psi) or mega pascals (MPa).