An Optimal Credit Scoring Model Based on the Maximum Default Identification Ability for Chinese Small Business

Table 1

The standard used for standardization of qualitative indicators.

(1) Layer	(2) Indicator	(3) Standardized description	(4)Standardized data
Basic situation of legal person	Education background	(1) Bachelor’s degree or above	1.00
		(2) Associate degree	0.90
		(3) High school or technical secondary school degree	0.70
		(4) Junior middle school and primary school education	0.40
		(5) Others or lack of data	0.00
…	…	…	…
Business reputation	Enterprise tax record	(1) Tax history more than 3 years and no tax arrears records	1
		(2) Tax history less than 3 years and no tax arrears records	0.75
		(3) One-time tax arrears record and paid in full later	0.5
		(4) No tax record	0.25
	…	…	…

Note: the table shows the scores of qualitative indicators determined by experts, ranging from 0 to 1. It provides a basis for subsequent quantitative weight calculation.