A bank uses the historical simulation method to calculate 1-day 99% VaR based on 500 days of historical data. Over the past year (250 trading days), the bank experienced 7 exceptions (days where actual losses exceeded VaR). Using the Kupiec unconditional coverage test, is the VaR model acceptable at the 5% significance level? (Chi-squared critical value with 1 degree of freedom at 5% = 3.841)