Which One of the Following Is the Component of Credit

question 358

Multiple Choice

Which one of the following is the component of credit policy which addresses the determination of which customers are most apt to pay?

• A) Credit analysis.
• B) Collection policy.
• C) Credit extension.
• D) Terms of sale.
• E) Consumer credit.

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Definitions:

Type II Error

A statistical mistake of failing to reject a false null hypothesis, missing an actual effect or difference when it exists.

Power

In statistics, power refers to the probability that a test will reject a false null hypothesis, essentially measuring the test's capability to detect an effect if there is one.

Body Mass Index

A numerical computation using height and weight to classify an individual's body weight status.

Type I Error

A statistical error that occurs when a null hypothesis is incorrectly rejected when it is actually true.