Solved

Credit Scoring Policy Jia's Jewelry Uses the Credit

Question 70

Essay

Credit Scoring Policy Credit Scoring Policy Jia's Jewelry uses the credit scoring technique to evaluate retail applications. The financial and credit characteristics considered and weights indicating their relative importance in the credit decision are shown above. The firm's credit standards are to accept all applicants with credit scores of 85 or more, to extend limited credit to applicants with scores ranging from 75 to 84, and to reject all applicants below 75. The firm is currently processing two applicants. The scores of each applicant on each of the financial and credit characteristics are summarized above. Would you recommend either of these applicants for credit extension? Credit Scoring Policy Jia's Jewelry uses the credit scoring technique to evaluate retail applications. The financial and credit characteristics considered and weights indicating their relative importance in the credit decision are shown above. The firm's credit standards are to accept all applicants with credit scores of 85 or more, to extend limited credit to applicants with scores ranging from 75 to 84, and to reject all applicants below 75. The firm is currently processing two applicants. The scores of each applicant on each of the financial and credit characteristics are summarized above. Would you recommend either of these applicants for credit extension? Jia's Jewelry uses the credit scoring technique to evaluate retail applications. The financial and credit characteristics considered and weights indicating their relative importance in the credit decision are shown above. The firm's credit standards are to accept all applicants with credit scores of 85 or more, to extend limited credit to applicants with scores ranging from 75 to 84, and to reject all applicants below 75. The firm is currently processing two applicants. The scores of each applicant on each of the financial and credit characteristics are summarized above. Would you recommend either of these applicants for credit extension?

Correct Answer:

verifed

Verified

Applicant A's credit score = 7...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q65: The more predictable a firm's cash inflows,

Q66: A firm expects to have funds of

Q67: The aggressive financing strategy is risky in

Q68: Controlled disbursing involves the strategic use of

Q69: The ABC system is an inventory management

Q71: If a firm increases its cash discount

Q72: The _ financing strategy requires a firm

Q73: The _ is an inventory technique that

Q74: A risk of the _ financing strategy

Q75: A firm's credit terms cover _.<br>A) credit