Lesson 4 of 10
Does the score work? Measuring it
Two questions decide whether a score is fit to use: does it put risky borrowers below safe ones, and do its probabilities match what actually happens? They are measured differently, and a score can pass one and fail the other.
Published 11 October 2026 · Listen to this lesson
In this lesson
- Ranking: discriminatory power
- The Kolmogorov–Smirnov statistic
- Accuracy of the probabilities: calibration
- Testing it the right way
- A better score is not yet a better business
- Seven questions for a management meeting