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  3. it has determined that a funded reserve is its pre

It has determined that a funded reserve is its preferred method of retention and it would...

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Statistics

It has determined that a funded reserve is its preferred methodof retention and it would like to make sure that it has enough tocover losses in 97.5% (2.5% on each side of the distribution) ofall situations with losses normally distributed. How much does theretailer need to have in its funded reserve if the expected lossesare $2.5m and standard deviation is $500k?

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4.1 Ratings (762 Votes)
Given 975 losses cover probability of    See Answer
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