What is the probability of losses

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Suppose that there is a 4.5% probability that operational risk losses of a certain type exceed $15 million. Use the power law with αα parameter equal to 1.50.

a. What is the probability of losses exceeding $19 million? % Round your answer to two decimals.

b. What is the worst-case loss at 93% confidence level?

Reference no: EM133110943

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