View source for Loan Policy Selection

'''Description:''' A lender has a large pool of money to loan, but needs to decide what credit rating threshold to require and what interest rate (above prime) to charge.  The optimal value is determined by market forces (competing lenders) and by the probability that the borrower defaults on the loan, which is a function of the economy and borrower's credit rating.  The model can be used without the Analytica optimizer, in which case you can explore the decision space manually or use a parametric analysis to find the near optimal solution.  Those with Analytica Optimizer can find the optimal solution (more quickly) using an [[NlpDefine|NLP]] search.

'''Best used with Analytica Optimizer'''

'''Keywords:''' Creditworthiness, credit rating, default risk, risk analysis

'''Author:''' Lonnie Chrisman

'''Download:''' [[media:Loan policy selection.ANA|Loan policy selection.ana]]