Final Answer:
Yes, it can be fair for a company to use this type of data when extending credit, but it should be done carefully and in conjunction with other relevant information.
Step-by-step explanation:
Using data about the number of times an individual has been overdue on a bill can be a valuable factor for companies to assess an individual's creditworthiness. The normal distribution of overdue bill occurrences provides a statistical understanding of payment behavior within a population. However, solely relying on this data might not be comprehensive or entirely fair.
It's crucial for companies to consider various factors beyond overdue bills, such as income stability, employment history, and additional financial commitments, to make a more accurate assessment. A holistic approach that combines different data points provides a clearer picture of an individual's financial responsibility.
Moreover, while statistical models offer insights, they might not consider unique circumstances leading to overdue bills. Unexpected life events, medical emergencies, or temporary financial crises could influence a person's bill payment history. Therefore, understanding the reasons behind overdue bills is essential for a fair evaluation.
Ultimately, utilizing data on overdue bills can be fair if it's part of a broader assessment strategy that considers multiple factors. This approach ensures a more nuanced understanding of an individual's financial situation and promotes fairer credit evaluations.