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Name the 5 Cs of Credit Risk, and Explain What

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Essay

Name the 5 Cs of credit risk, and explain what they are used for. Explain when the debt-to-income ratio would be used.


Definitions:

Right Tail

The portion of a distribution to the right of a specified value, often related to the significance level in hypothesis testing.

Observed Frequencies

The actual number of occurrences or instances recorded in each category or interval of a study.

Expected Frequencies

The anticipated count of occurrences in each category of a variable, calculated under a specific hypothesis in a chi-square test.

Shape

Describes the geometric or visual characteristics of an object or distribution, such as symmetry, skewness, or roundness.

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