Statistical scoring is a method used to evaluate and rank data based on numerical values. It often involves assigning scores to different variables, allowing for comparisons across various subjects or groups. This technique is commonly used in fields like finance, healthcare, and education to make informed decisions based on quantitative analysis. In practice, statistical scoring can involve algorithms that analyze historical data to predict future outcomes. For example, in credit scoring, financial institutions assess an individual's creditworthiness by calculating a score based on their credit history, payment behavior, and other relevant factors. This helps lenders determine the risk associated with granting loans.