Explain the Purpose/benefits in Adding a Credit-Scoring Model to Evaluate

question 21

Essay

Explain the purpose/benefits in adding a credit-scoring model to evaluate a loan application.

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Definitions:

Fundamental Attribution Error

A cognitive bias where people are more likely to attribute others' actions to their character or disposition rather than to external factors.

Internal Attributions

The process of ascribing the cause of one's own or others' behaviors and outcomes to internal, personal factors rather than to external or situational factors.

Situational Causes

External factors or circumstances that are considered to influence an individual's behavior.

Proximity

Physical or psychological closeness between people, which can significantly influence social bonds and relationships.