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Scoring Models

What are scoring models?

Scoring models are developed by applying statistical procedures to historical data with the objective of predicting a future outcome. They are based on the premise that past behavior is a good predictor of future performance. A scoring model’s purpose is to predict the likelihood that an outcome of interest will occur in a specified time period.

Some major applications include Loan defaults, Pre-screening, Bankruptcy, Limit assignment, Collection modeling and Predicting marketing responses.

Custom scoring models are usually built for a specific client, and tailored to closely match their data and business objectives. Naturally, customization results in a more relevant and accurate prediction tool.