What do low scores in a scoring model indicate?

Low scores in a scoring model indicate worse business performance, often referred to as "bad" behavior. In the context of scoring models, a lower score typically suggests that the subject being assessed—such as a customer, transaction, or decision—exhibits characteristics or behaviors that are not favorable for the business objectives.

For example, in customer segmentation models, low scores might correlate with lower likelihoods of purchasing or higher risks of default, thus representing potential issues or undesirable behaviors that could impact business outcomes negatively. This insight is crucial for organizations looking to prioritize their resources effectively, as it enables them to focus on strategies or interventions that mitigate risk and enhance overall performance.

The other options do not align with the implications of a low score in a scoring model. High potential for growth typically corresponds with high scores, as does optimal decision-making. Inconsistent business outcomes may relate more to the variability in scoring rather than indicating specifically poor behavior. Therefore, low scores directly reflect undesirable tendencies or outcomes in a scoring system.