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NEW QUESTION: 1
The frequency distribution for operational risk loss events can be modeled by which of the following distributions:
I. The binomial distribution
II. The Poisson distribution
III. The negative binomial distribution
IV. The omega distribution
A. I, II, III and IV
B. I, III and IV
C. I and III
D. I, II and III
Answer: D
Explanation:
Explanation
The binomial, Poisson and the negative binomial distributions can all be used to model the loss event frequency distribution. The omega distribution is not used for this purpose, therefore Choice 'a' is the correct answer.
Also note that the negative binomial distribution provides the best model fit because it has more parameters than the binomial or the Poisson. However, in practice the Poisson distribution is most often used due to reasons of practicality and the fact that the key model risk in such situations does not arise from the choice of an incorrect underlying distribution.
NEW QUESTION: 2
A. Option A
B. Option E
C. Option D
D. Option B
E. Option C
Answer: B,E
NEW QUESTION: 3
Why is it recommended to introduce a Business Value Analysis early in the sales cycle?
A. You need to charge for the BVA. and establish that requirement earlier is better.
B. It helps to qualify the opportunity and introduces TRIRIGA value propositions to build a business case.
C. The customer will not believe the numbers past the mid-point of the sales cycle.
D. There's typically no time at the end of the cycle to gather required information.
Answer: A
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