A scoring model is
A) A process used in ancient times to carve notches descriptive of quantities involved in accounting transactions.
B) A statistically developed process that when applied helps the user predict business failures.
C) A statistically developed process that when applied helps the user predict cash flows generated by new commercial contacts.
D) A statistically developed process that when applied helps the user predict sales volume generated by a marketing campaign.

Question

Quizplus · Accepted Answer

A scoring model is a statistically developed process that helps the user predict business failures by analyzing various financial and non-financial data points. It assigns a numerical score to a company based on its financial condition, creditworthiness, and other factors that can affect its ability to repay loans or honor its obligations.

A Scoring Model Is