Fat tail: Difference between revisions
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This means that the likelihood and size of extreme negative events | This means that the likelihood - and size - of extreme negative events are systematically underestimated by conventional statistical models. | ||
Latest revision as of 22:01, 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 are systematically underestimated by conventional statistical models.
