Final answer:
A credit score option (a) is a measure of an individual's credit risk, calculated from their credit report using a standardized formula. It indicates how likely they are to repay their loans on time.
Step-by-step explanation:
The measure of an individual's credit risk, calculated from a credit report using a standardized formula, is called a credit score. A credit score is a numerical representation of a borrower's creditworthiness, indicating how likely they are to repay their loans on time. It is determined by factors such as payment history, the amount owed, length of credit history, types of credit used, and new credit inquiries.
For example, if an individual has a consistently good repayment history, their credit score is likely to be higher, indicating a lower credit risk. On the other hand, if someone has a history of late payments or delinquencies, their credit score will be lower, indicating a higher credit risk.