Suppose that there is a 90 probability that operational risk losses of a certain type will not exceed $20 million The power law parameter, , is 0 8 What is the probability of losses exceeding (a) $40 million, (b) $80 million, and (c) $200 million ...

Probv x Kx08 When x 20 the pro ...

Suppose that there is a 90% probability that operational risk losses of a certain type will not

Question:

Suppose that there is a 90% probability that operational risk losses of a certain type will not exceed $20 million. The power law parameter, α, is 0.8. What is the probability of losses exceeding (a) $40 million, (b) $80 million, and (c) $200 million?

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