Chapter

Business Forecasting and Credit Decisions

Hrishikes Bhattacharya

in Banking Strategy, Credit Appraisal, and Lending Decisions

Second edition

Published in print October 2011 | ISBN: 9780198074106
Published online September 2012 | e-ISBN: 9780199080861 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198074106.003.0013
Business Forecasting and Credit Decisions

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This chapter discusses one of the most reliable and commonly used techniques of business forecasting, and develops an appraisal methodology by applying this technique. Of the various statistical techniques used for forecasting, the least square regression analysis has stood the test of time. The standard error of estimate aided by the ‘t’ distribution table enables a decision maker to take a position within a range depending upon the risk profile of the customer, and that of the lending organization.

Keywords: statistical techniques; least square regression; standard error of estimate; t-distribution; forecasting

Chapter.  6872 words. 

Subjects: Financial Markets

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