# Exercise Solution 14.2

We are given *q* = 0.9, α + 1 = 375 and ε = .05. We calculate the ε = .05 quantile of the χ^{2}(1,0) distribution as 3.841. Setting this equal to [14.7], we solve for *X*. There are two solutions: 26.65 and 49.38. Rounding down and up, respectively, we set *x*_{1} = 26 and *x*_{2} = 50. We will reject the VaR measure if *X* ∉ [26, 50].