Assuming That a Credit Decision Has Been Analyzed and Credit

question 2

Multiple Choice

Assuming that a credit decision has been analyzed and credit refused due to a negative expected profit,which of the following changes,if of sufficient magnitude,might change the decision to one of approval?

• A) Increase the percentage of profit margin.
• B) Decrease the probability of payment.
• C) Increase the discount rate.
• D) Reduce the expected profit.

---

Definitions:

Empathy

Reacting to another person’s emotional state by experiencing the same emotional state.

Hypothesis

a proposed explanation for a phenomenon, made as a starting point for further investigation, which can be tested through experimentation or observation.

Accomplices

Individuals who knowingly and voluntarily participate in the commission of a crime or act, aiding the primary actors.

Quasi-Experimental

A research design that closely resembles an experimental study but lacks the element of random assignment to treatment or control groups, making it less able to definitively establish cause-and-effect relationships.