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Sharlene, the Risk Manager of Chief Rocking Records, Has Been

Question 39

Multiple Choice

Sharlene, the risk manager of Chief Rocking Records, has been asked to assist the corporate strategy team in planning a new compact disk factory. The team wants Sharlene's input on how many CDs they should produce. Sharlene knows the losses are distributed normally, and the probability of loss is 8%. She will use 2 standard deviations for the calculations. What is the number of exposure units needed for the actual loss to be within 10% of the expected?


A) 4,300
B) 4,600
C) 4,900
D) Infinite.

Correct Answer:

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