A Transition Matrix Can Be Used to Establish the Probabilities

question 2

True/False

A transition matrix can be used to establish the probabilities that a currently rated borrower will be upgraded, downgraded or will default over time.

---

Definitions:

Feelings Rules

Cultural norms dictating the appropriate emotions to be felt and expressed in various social situations.

Deep Acting

The process of managing emotions by actually trying to feel the emotions one is attempting to display, as opposed to merely acting them out.

Emotional Labor

Emotion work that is done as an occupational requirement or expectation.

Feeling Rules

Cultural norms governing the appropriate expression and management of emotions in various social situations.