Thomas et al. detail several statistical and operational research techniques used to build scorecard models. The book emphasizes that the best model depends on the nature of the data and the specific credit product. A. Discriminant Analysis and Logistic Regression
: It details the mathematical models (logistic regression, linear programming, neural nets) that help creditors move away from haphazard decision-making. credit scoring and its applications by l c thomas hot
You can find this essential monograph through retailers like Blackwell's mentioned in the book, such as logistic regression survival analysis Thomas et al
: The text argues that the phenomenal expansion of global consumer credit over the last fifty years would have been impossible without the automated, accurate risk assessment provided by these scoring techniques. Core Applications and Decision Frameworks Core Applications and Decision Frameworks The book defines
The book defines credit scoring as the scientific use of statistical and operations research (OR) techniques to determine creditworthiness. It focuses on two primary decision points: