How would you interpret a Z-score of 2.25?

Question

Quizplus · Accepted Answer

A Z-score of 2.25 indicates that the borrower's financial condition is neither good nor bad as it falls within the 'zone of ignorance' where there is uncertainty about the borrower's ability to repay the loan. This means that the borrower may or may not default, and further analysis may be required before granting a loan. The interpretation of the Z-score is not dependent on an FI manager's subjective opinion but rather on the standard Z-score interpretation framework.

How Would You Interpret a Z-Score of 2.25