The Use of Weights in Scoring Models Is Subject to Serious

question 19

Multiple Choice

The use of weights in scoring models is subject to serious criticism because:

• A) weightings are necessarily judgmental.
• B) the effect of weightings cannot be measured using sensitivity analysis.
• C) they use all-or-nothing, yes-or-no answers as factors.
• D) they can be used only for open-ended questions.

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Definitions:

Car Loan

A financial loan issued for the specific purpose of purchasing a car, typically involving interest and a repayment plan over a set period.

Compounded Semi-Annually

A method of calculating interest where the calculation is done twice a year, and the interest from the first half is added to the principal for the second half calculation.

Financial Institutions

Businesses that provide financial services, including banks, credit unions, and insurance companies.

Compounded Semi-Annually

Interest on an investment or loan calculated twice a year, adding each interest payment to the principal.