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a 3. You are appointed as Risk Manager of a local company. The company has established a fund with which to finance losses to the

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a 3. You are appointed as Risk Manager of a local company. The company has established a fund with which to finance losses to the company's motor vehicle fleet. The Board wants you to have 97.5% certainty that annual losses will NOT be greater than the amount money held in the fund. You analyze past loss data and find that mean (average) losses equal to $2 million per year with Jasmine's Health standard deviation of S500,000. The data follow Loss Amount (S) Probability normal distribution. How much would you 0.21 500 0.43 recommend to be held in the fund? 5,000 0.30 20,000 0.05 100,000 0.01 the 0

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