Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6TP: When a customer is delinquent on paying a notes receivable, your company has the option to continue...
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Your company provides credit to customers. Some
of these customers default on their loans, with very
negative implications for you. Describe how you could
use discriminant analysis to learn what distinguishes
the customers who default on their loans from those
who pay back their loans. How might you use such a
model?

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