The Sovereign Risk Assessment Methods Most Commonly Used by Large

question 58

True/False

The sovereign risk assessment methods most commonly used by large FIs are logit and probit models.

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Definitions:

Sum of Squares

The total of the squared differences between each observation and the mean of the data set, used in statistical analyses to measure variance.

Error

The difference between the measured or inferred value of a quantity and its actual value, often due to measurement or calculation limitations.

ANOVA Table

A table used to summarize the results and components of variance from an Analysis of Variance statistical test.

Additive

A method or model where the effects are simply added together to predict the outcome.