Credit Scoring Models Include

question 46

Multiple Choice

Credit scoring models include:

• A)linear probability models
• B)logit models
• C)linear discriminant analysis
• D)All of the listed options are correct.

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Definitions:

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered or altered by current or future actions.

Decision Making

Selecting a course of action from competing alternatives.

Avoidable Cost

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.