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Question 16 (3 points) You are appointed as Risk Manager of a local company. The...

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Question 16 (3 points) You are appointed as Risk Manager of a local company. The company has established a fund with which to finance losses to the company's motor vehicle fleet. The Board wants you to have 99.5% certainty that losses will NOT be greater than the amount money held in the fund. Using tools that you learned in FINA 467, you analyze past loss data and find that mean (average) losses equal to $4 million per year with a standard deviation of $250,000. The data follow the normal distribution. Accordingly. you will need at least the following amount of money in the fund: O $3.25 million Bay $4 million $4.5 million $4.75 million

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