The risk priority number (rpn) is the measure of risk related to a particular failure mode. the ratings for each category (severity, occurrence, and detection) are on a 1 to 10 scale. if a fmea has 10 failure modes with rpn numbers ranging from 50 to 300, an improvement team's recommended actions should focus on which of the following? a. work on those failure modes with rpns greater than 50b. use the pareto principle to prioritize the highest rpnsidentify failure modes with high severity rankings, followed by high rpn numbersc. identify failure modes with high severity rankings, followed by high rpn numbersd. use the pareto principle and start with the top 20% of the failure modes

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.