QUESTION $1(25$ MARKS$)$ The managing director has noted that the provided scenario mentions using confidence intervals to estimate Value at Risk $($VaR$)$ and has thus requested that you provide a clear description of the following issues. $$ Critically discuss why Value at Risk $($VAR$)$ and confidence intervals are used in this context, $$ What specific information does the $95\%$ confidence interval $($residual risk will be no more than $$41,968)$ provide to senior management. $$ Comment on how this information can be used for decision$-$making regarding risk acceptance or mitigation?