Exercise

Individual Higher Default Probability

Of the individuals below, which has the highest predicted probability of default? Select the correct answer.

50 XP

A) The one observed in 2006 with $1000 of credit card debt, a credit score of 700 and a house age of 30 years.

B) The one observed in 2006 with $1000 of credit card debt, a credit score of 800 and a house age of 30 years.

C) The one observed in 2009 with $10,000 of credit card debt, a credit score of 700 and a house age of 10 years.

D) The one observed in 2009 with $10,000 of credit card debt, a credit score of 800 and a house age of 30 years.