Credit Scoring Systems Can Be Used To

question 57

Multiple Choice

Credit scoring systems can be used to:

• A)Reduce the effective cost of trade
• B)Determine the cost of goods sold
• C)Evaluate Dun & Bradstreet reports
• D)Evaluate credit risk based on the borrower's characteristics

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Definitions:

Variance Data

Variance data measures the spread of a set of numbers, indicating how much individual numbers in a dataset differ from the mean.

Mean Value

The mean value is a measure of central tendency, calculated by adding all the numbers in a set together and dividing by the count of numbers.

Measure Variability

The extent to which data points in a set diverge from the average value, indicating the spread or dispersion in the data.

Interval Scales

A type of scale used in measurement that involves numerical values where the intervals between values are interpretable, but there's no true zero point.