1) The External Grading is publicly available while the Internal Graduation is not publicly available. a) Correct b) Wrong

2) The probability of default is a characteristic that refers to the entire credit institution and is therefore the same for all portfolios it has.

a) Correct b) Wrong

3) Suppose we use a decision tree as a model credit rating and that for a borrower we have characteristics which appear in its various branches tree. Then a) to decide whether the borrower is good or bad customer will need to use all of them features available. b) to decide whether the borrower is good or bad Customer may not need to use all of them features available. c) we can choose how many and which of the available ones characteristics we will use to decide against whether the borrower is a good or bad customer. d) we can always decide whether the borrower is a good or bad customer using the price of one and only from the available features. e) None of the answers that are duly incorrect

Explain the answer. Thank you!