Fat tail: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Removed link) |
imported>Doug Williamson (Classify page.) |
||
| Line 1: | Line 1: | ||
'Fat tails' describes the greater likelihood of extreme | 'Fat tails' describes the greater likelihood of extreme conditions, than predicted by conventional models of probability. | ||
This pattern is also known as 'leptokurtosis'. | This pattern is also known as 'leptokurtosis'. | ||
This means that the likelihood and size of extreme negative events is systematically underestimated by conventional | This means that the likelihood and size of extreme negative events is systematically underestimated by conventional statistical models. | ||
| Line 16: | Line 16: | ||
* [[Tail event]] | * [[Tail event]] | ||
* [[Tail risk]] | * [[Tail risk]] | ||
* [[Tipping point]] | |||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 21:50, 8 September 2021
'Fat tails' describes the greater likelihood of extreme conditions, than predicted by conventional models of probability.
This pattern is also known as 'leptokurtosis'.
This means that the likelihood and size of extreme negative events is systematically underestimated by conventional statistical models.
