How Do Banks Use Credit-Scoring Models? If You Were Developing

question 3

Essay

How do banks use credit-scoring models? If you were developing such a model, what factors do you think would be important in determining if an applicant is a good credit risk?

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Definitions:

Rods and Cones

Photoreceptor cells in the retina of the eye responsible for vision. Rods are sensitive to low light levels, while cones support color vision and detail in well-lit conditions.

Retina

A layer of cells at the back of the eye that senses light and sends visual signals to the brain for processing.

Phenomena

Observable events or occurrences that are notable for their distinctive features, especially those which are scientifically interesting or challenging to explain.

Distribution

The process by which goods or services are made available to consumers or the manner in which a phenomenon is spread out or distributed across an area or population.