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NEW QUESTION: 1
When evaluating network designs, what indicator demonstrates that the modular approach was followed?
A. ability to scale
B. redundant connectivity
C. follows best practices
D. easy to deploy
NEW QUESTION: 2
The generalized Pareto distribution, when used in the context of operational risk, is used to model:
A. Tail events
B. Average losses
C. Expected losses
D. Unexpected losses
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.