Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
Which of the following statements about the power law in operational risk modeling is correct?
A
The power law suggests that operational losses follow a normal distribution
B
The power law is not appropriate for modeling operational losses from natural disasters
C
The power law is used to model operational losses that occur in the body of the distribution
D
The power law only describes the right tail of the distribution and is approximately true only for high values
