Question

Which one of the following statements is correct about rating schemes?

a. Rating schemes generate hard numbers to work with, even though they do not generate a clear sense of risk relative to othe
b. Rating schemes are primarily used in marketing research
c. Rating schemes are based on qualitative data only
d. Rating schemes are not useful in risk assessment

Answer 1

Rating schemes can generate hard numbers to work with, but they do not necessarily provide a clear sense of risk relative to other options. They are not primarily used in marketing research. Rating schemes are not solely based on qualitative data and can be useful in risk assessment when used appropriately.

Step-by-step explanation:

Rating schemes can generate hard numbers to work with, but they do not necessarily provide a clear sense of risk relative to other options (option a). They are not primarily used in marketing research (option b). Rating schemes are not based on qualitative data only, but can incorporate both quantitative and qualitative data (option c). Lastly, rating schemes can be useful in risk assessment when used appropriately (option d is incorrect).