Sequential testing for a Bernoulli variable
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Bernoulli random variables and mean, variance, and standard deviation — Krista King Math | Online math help
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Suppose that we back-test a VaR model using 1,000 days of data. The VaR confidence level is 99% and we observe 15 exceptions. Should we reject the model at the 5% confidence level? Use the one-tail test discussed in class.
Suppose that we back-test a VaR model using 1,000 days of data. T…
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