Extreme Value Theory

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Extreme Value Theory

In statistics, any way to estimate or measure the likelihood of an extremely unlikely event. That is, extreme value theory measures the probability that a data point that deviates significantly from the mean will occur. It is useful in insurance to measure the risk of catastrophic events, such as tornados and wildfires.
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References in periodicals archive ?
We argue that, in this case, revising the estimation method (e.g., using extreme-value theory rather than empirical frequencies) seems more appropriate than revising the event definition.
A recent article used a branch of statistics known as extreme-value theory to model the relationship between age and finishing time among the top five finishers of each single age in the citizens' division of the 1995 Bolder Boulder 10K.
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