Scoring models are useful because they allow for the inclusion of qualitative factors.

Question

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Scoring models often use a combination of quantitative and qualitative factors to determine a score for a certain variable or entity. The inclusion of qualitative factors is important because it can provide additional information and insights that cannot be captured by purely quantitative methods. For example, in a credit scoring model, qualitative factors such as a borrower's employment history or industry trends may be considered alongside quantitative factors such as credit utilization or payment history.

Scoring Models Are Useful Because They Allow for the Inclusion