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Risk manager wants to know if VaR violations of the risk model are independent, and ask you to backtest. Your team has calculated hit sequence

Risk manager wants to know if VaR violations of the risk model are independent, and ask you to backtest. Your team has calculated hit sequence and got you the following counts. Conduct the appropriate hypothesis testing. What is your null hypothesis? What is your test statistic? What is your conclusion?

P 1%

T0 242

T1 10

T00 230

T01 10

T10 10

T11 1

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