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7-95 This Risk of Default Is Associated with General Economy-Wide

question 51

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7-95 This risk of default is associated with general economy-wide or macro conditions affecting all borrowers.


Definitions:

Backward Elimination

A method in statistical model building where all variables are included at the start and then removed one by one based on some criteria.

F Statistic

A ratio used in ANOVA tests to determine if the variances between means of several groups are significantly different.

SST

Stands for "Sum of Squares Total," a measure in statistics that quantifies the total variation in a dataset.

SSE

Stands for Sum of Squares due to Error, a measure in statistics used to quantify the discrepancy between the data and an estimation model.

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