CRA Statistical Credit Scoring Models Have Difficulty Measuring Political Risk

question 78

True/False

CRA statistical credit scoring models have difficulty measuring political risk events.

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Definitions:

Negative Exponential

A statistical distribution often used to model the time between independent events that happen at a constant average rate.

Poisson

A probability distribution that represents the likelihood of a certain number of events happening within a specified time or space interval.

Probability Distributions

Statistical functions that describe all the possible values and likelihoods that a random variable can take within a given range.

Multichannel

Multichannel refers to the use of multiple means or platforms to interact with consumers or conduct business, including physical locations and online presence.