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5. Suppose that we back-test a VaR model using 500 days of data. The VaR confidence level is 98% and we observe 15 exceptions. Should

5. Suppose that we back-test a VaR model using 500 days of data. The VaR confidence level is 98% and we observe 15 exceptions. Should we reject the model at the 5% confidence level using the binomial test?

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