A Numerical Credit Scoring System May Rate All Except Which

question 50

Multiple Choice

A numerical credit scoring system may rate all except which of the following?

• A) D&B credit rating
• B) Location of the business
• C) Financial characteristics of the applicant
• D) Current ratio of the applicant

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Definitions:

Expected Value

In probability theory, it is the weighted average of all possible values of a random variable, with weights being the probabilities of each outcome.

Natural Log

The logarithm to the base e, where e is an irrational and transcendental constant approximately equal to 2.71828.

Risk Averter

An individual or entity that prefers to avoid risk, typically choosing options with more certain outcomes over those with higher, but more uncertain, returns.

Expected Value

A calculated average of the possible outcomes of a given event, weighted by the likelihood of each outcome occurring.