Question #8
Reading: Reading 28 Credit Analysis Models
PDF File: Reading 28 Credit Analysis Models.pdf
Page: 3
Status: Correct
Correct Answer: A
Question
Which key input into a reduced form model can be estimated using a regression model?
Answer Choices:
A. Default intensity
B. Loss intensity
C. Recovery rate
Explanation
Default intensity is the probability of default over the next time period and can be
estimated using regression models.