A Major Advantage of Discriminant Models to Assess the Credit

question 84

True/False

A major advantage of discriminant models to assess the credit risk of a customer is the stability of the coefficient weights over time.

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Definitions:

Decentralization

The distribution of decision-making powers and operational activities away from a central authoritative location or group.

Advantage

A condition or circumstance that puts one in a favorable or superior position.

Cost Driver

A cost driver is a factor that causes a change in the cost of an activity, influencing the cost of production and operation in both direct and indirect cost management.

Support Department

A non-production department that provides essential services and support to the production departments and other parts of an organization.