Why this is mistaken
Define the indicator, date, population, migration, and empirical or judgmental link to cash shortfalls. A table can reveal a pattern without proving its cause.
Where to watch
When this mistake may appear
- High risk means 20 percent.
- Older vintages need a larger reserve.
Check your work
Your work may contain this mistake if:
- Assigns rate from label.
- Has no source or observation period.
- Infers causation from cohort pattern.