Automated Underwriting

  

A high-tech form of undergarment that automatically provides personal...wait, we misread that.

Okay, we've got it now: automated underwriting. That's a form of computer program that quickly processes loan applications.

Basically, we're relegated to the dustbin of history the olde tyme process of explaining your life's story to an uncaring banking bureaucrat, who weighs your entire financial future while coldly reviewing pay information, savings data and credit scores in an effort to decide whether you qualify as a passable loan risk. Instead, this procedure has been replaced by delivering your life's story to an uncaring banking computer, which weighs your entire financial future while coldly reviewing pay information, savings data and credit scores in an effort to decide whether you qualify as a passable loan risk.

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Finance: What is Opportunity Cost?348 Views

00:00

Finance What is opportunity cost All right Opportunity cost the

00:07

value you forfeit by choosing a path a over path

00:10

be and path a end or b can mean doing

00:13

nothing at all right Here's an example Opportunity cost people

00:16

Let's say you have a choice of taking two jobs

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One is a safe steady gig with ibm You have

00:21

to commit to working there for twenty five years But

00:24

the big blue boss has promised that at the end

00:25

of that time period you'll get a good watch and

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a million dollars twenty five years and a million bucks

00:31

and a reasonably decent lifestyle with low risk All right

00:34

well that's half a two years into the gig You

00:37

notice that a lot of your friends are whining about

00:39

taxes and they're buying porsche's You're still paying off school

00:43

loans working for ibm there Then ten years later your

00:46

friends or buying jets What happened Well they went to

00:50

work for a risky start up in silicon valley and

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got stock options And of course you think we'll shoot

00:56

Where can i get me some of that Well you

00:58

committed to the safe steady big blue for twenty five

01:02

years you uh paid them with your commitment And in

01:05

the process you gave away other opportunities You might have

01:09

had teo make real bank by your own jets The

01:12

opportunity cost of your desire for a nice safe job

01:17

cost you big If you had been lucky enough to

01:19

get a Job at 1 of those hot startup you'd

01:20

be flushed with cash today just like your buddies All

01:23

right Another example And this happens to be a common

01:25

google interview question You win two free front row tickets

01:28

to a sick poppy's concert which sell on stubhub for

01:31

a thousand bucks each You decide to go to the

01:33

concert How much did the tickets cost you They were

01:36

free You say uh no You could have taken ninety

01:39

seconds fill out stub up form and gotten too grand

01:42

just selling them You chose not to receive the two

01:45

grand go to the concert instead which in a land

01:47

of opportunity cost lost is the same as paying two

01:50

grand for the tickets In other words money earned and

01:52

money lost It is not just counted by the dollar

01:55

bills that flow in between your fingers It's the value

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in opportunities you take and in the value of the

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ones you miss So when you see an opportunity take 00:02:04.09 --> [endTime] it especially if it gets you frequent flyer miles

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