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NEW QUESTION: 1

A. Option C
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The generalized Pareto distribution, when used in the context of operational risk, is used to model:
A. Tail events
B. Average losses
C. Unexpected losses
D. Expected losses
Answer: A
Explanation:
Explanation
Some risk experts have suggested the use of extreme value theory to model tail risk or extreme events for operational risk. The generalized Pareto model or the Peaks-over-Threshold (POT) model are often used to model extreme value distributions, and therefore Choice 'a' is the correct answer.

NEW QUESTION: 3
Complete the sentence. All of the following are sections of the recommended template for defining Architecture Principles, except ___________
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C. Rationale
D. Statement of Principle
E. Name
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