Rating denotes an indicator, expressed in numerical or ordinal form, which expresses the degree of significance, importance of a particular single object or phenomenon among many similar ones.
Instructions
Step 1
Ratings are often used to evaluate various objects due to the fact that many characteristics of an object are determined by one position, this is very convenient for users of such ranking systems. However, this is not an absolutely objective assessment method, since ratings are determined according to the initially set parameters on the basis of separately taken slices. Therefore, if a similar analysis is carried out on the basis of other indicators, the distribution of places in the rating system may change significantly.
Step 2
The ratings determine the most varied spheres of human activity, such as the degree of popularity of various politicians or the arts, music charts, film rentals, and the ratings of the work of the mass media, economic and even statistical, are singled out separately.
Step 3
In the sphere of economics, ratings determine the degree of reliability of a particular bank, or, conversely, the degree of credit confidence of a particular enterprise or individual. There are even bank ratings of countries based on their credit histories. In general, this indicator determines the creditworthiness of a person, enterprise or an entire country. These indicators are determined on the basis of the available financial history of potential loan recipients, in addition, the existing property and the amount of funds that one or another market participant has already taken on credit is also significant.
Step 4
Ratings are necessary in order to make an assessment of the possibility of timely permanent payments on loans taken by individual business entities. The credit rating system is also used to determine the number of insurance payments, lease collateral. When forming it, you need to take into account the characteristics of a particular country, firm, enterprise. With low ratings, there is a high probability of default.
Step 5
Rating in mass media denotes the ratio of the number of audience that watched or listened to a certain program, read the studied print media in a certain period of time to the total population.
The average media rating is the sum of all ratings divided by the number of posts or ads played.