Providing a higher level
of predictiveness over broad - based bureau or expert, off - the - shelf scoring solutions, a FICO ® Custom Score allows you to leverage additional credit data sources and considerations to more precisely distinguish good and bad risks based on your specific lending objectives — helping drive more profitable decisions.
Horseshoe theory suffers from a host of issues, among them the vagueness and uselessness of «left - right» single axis measurement; as well as its lack
of predictiveness.
Anyone tempted to attack tests for lack of
predictiveness should look at studies of the formal interview, which demonstrate that it is virtually worthless as a method of selecting staff.
Similarly, other indicators that are marginally better in terms of
predictiveness would not be cost - effective to collect.