Question
has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to evaluate such
has asked for a $3,500 loan from Beard Center National Bank to repay some personal expenses. The bank uses a credit-scoring system to evaluate such requests, which contains the following discriminating factors along with their associated point weights in parentheses: Credit Rating (excellent 3; average 2; poor or no record 0) Time in Current Job (five years or more, 6; one to five years, 3) Time at Current Residence (more than 2 years, 4; one to two years, 2; less than one year, 1) Telephone in Residence (yes, 1; no, 0) Holds Account at Bank (yes, 2; no, 0) The bank generally grants a loan if a customer scores 7 or more points. Mr. Bayyoud has an average credit rating, has been in his current job for three years and at his current residence for two years, has a telephone, but has no account at the bank. Can Mr. Bayyoud get the loan.
a. Yes, he can get the loan
b. No, he cannot get the loan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started