1. A risk manager is comparing the use of parametric and non-parametric approaches for calculating VaR and is concerned about some of the characteristics present in the loss data. Which of the following conditions would make non-parametric approaches the favored method to use?

1. Scarcity of high magnitude loss event
2. Skewness in the distribution
3. Unusually high volatility during the data period
4. Unusually low volatility during the data period