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Losses on the loan portfolio of ABC, International Bank are normally distributed. During the years 2015 to 2019, the annual loss data was $ 3,
Losses on the loan portfolio of ABC, International Bank are normally distributed. During the years 2015 to 2019, the annual loss data was $ 3, $ 4, $ 4.5, $ 5 and $ 6 million respectively. The probability associated with each annual loss is 20%. Using the Normal probability distribution and knowing that the standard deviation is $ 1 million, the expected loss would amount to A. $ 3,000,000 B. $ 3,700,000 C. $ 4,300,000 D. $ 4,500,000
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