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What is the probability of losses

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Reference no: EM133111084

The power law.

Suppose that there is a 5% probability that operational risk losses of a certain type exceed $11 million. Use the power law with αα parameter equal to 1.50.

a. What is the probability of losses exceeding $19 million?

b. What is the worst-case loss at 90% confidence level?

Round your answer to two decimals.

Reference no: EM133111084

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