The 10-Q report of Global Bank states that the monthly VAR of ABC Bank is $10 million at a 95% confidence level. What is the proper interpretation of this statement?
　　A. If we collect 100 monthly gain/loss data of Global Bank, we will always see five months with losses larger than $10m.
　　B. There is a 5% probability that the bank will gain less than $10m each month.
　　C. There is a 95% probability that the bank will lose less than $10m over a month.
　　D. There is a 5% probability that the bank will lose less than $10m over a month.
　　Answer:C
　　There is a 95% probability that the bank will lose less than $10m in a month. We could also say there is a 5% probability that we will lose more than $10m in a month. "If we collect 100 monthly gain/loss data of Global Bank, we will always see five months with losses larger than $10m" is not the correct interpretation of probability in that we cannot assume outcomes with certainty, instead we need to assume probabilities.