Exhibit 10.3 The Information Below Is Used for the Following Questions

question 42

Essay

Exhibit 10.3
The information below is used for the following questions.
A loan officer wants to determine if people will be late in making loan payments. She has information of 18 current loans including the applicants income, level of assets and whether or not the person has been late on payments. She has performed an analysis on the data and obtained the output shown below. ​ ​ ​ ​ ​ ​ ​
-Refer to Exhibit 10.3. Compute the discriminant score and predicted group for someone with an income of 65 and assets of 11.

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Definitions:

Behavioral Incentives

Rewards or punishments designed to influence and modify the behavior of individuals or groups.

Cross-Unit Incentives

Incentive programs designed to encourage collaboration and shared success between different departments or divisions within an organization.

Financial Incentives

Monetary rewards or benefits offered to influence the behavior or actions of individuals or organizations, such as bonuses, subsidies, or tax credits.

Contract Employees

Outside workers who are hired by a firm to perform specific predetermined tasks for a company and who are paid by the job.