If a bank wants to identify successful and unsuccessful credit risks for home mortgage loans,it should use ____.
A)factor analysis
B)multidimensional scaling
C)MANOVA
D)discriminant analysis

Question

Quizplus · Accepted Answer

Discriminant analysis is the statistical method used to identify and classify successful and unsuccessful credit risks for home mortgage loans. It helps in predicting the likelihood of loan defaults based on various variables such as credit score, income, employment status, and other relevant factors. Factor analysis, multidimensional scaling, and MANOVA are not suitable for this purpose.

If a Bank Wants to Identify Successful and Unsuccessful Credit