Credit Scoring And Its Applications By L C Thomas Hot

A fundamental problem: You only have outcome data on accepted applicants. Rejected applicants never get a chance to perform, so you cannot know if your model is biased.

: The book explores the two most critical decisions in lending: credit scoring and its applications by l c thomas hot

Therefore, it is now used in each of the four R's – Risk, Response, Revenue, and Retention. The University of Edinburgh A fundamental problem: You only have outcome data