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CCBA · Question #476

A deployed loan product was funded with the expectation of prepayment risk reduction. Initially key performance indicators would be to take similar loan prepayment rates over the previous 10- year…

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Question

A deployed loan product was funded with the expectation of prepayment risk reduction. Initially key performance indicators would be to take similar loan prepayment rates over the previous 10- year period and compare it with the new product. After implementation, the business analyst (BA) determines that the decade old housing market is vastly different. Which of the following should the BA consider for validity of performance measures?

Options

  • ACurrency
  • BTiming
  • CSample size
  • DFrequency

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Topics

#performance measure validity#sample size#KPI evaluation#historical data
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