Assume that the tail loss distribution for losses in millions of dollars, in excess of $1 million, is modeled by an exponential distribution with scale parameter b 0 75 Compute the worst loss at the 99th percent confidence level ...

Hence for the final analysis we can ...

Assume that the tail loss distribution for losses in millions of dollars, in excess of $1 million,

Question:

Assume that the tail loss for losses in millions of dollars, in excess of $1 million, is modeled by an exponential with scale parameter b = 0.75. Compute the worst loss at the 99th percent confidence level.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...