Linear discriminant models rely on a company's forecasted financial data so that the FI manager is able to assess the borrower's future payment ability.

Name: Linear discriminant models rely on a company's forecasted financial data so that the FI manager is able to assess the borrower's future payment ability.
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Linear discriminant models use historical financial data and ratios to assess credit risk, not forecasts of future financial data.

Linear Discriminant Models Rely on a Company's Forecasted Financial Data