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An Intuitive Curve-Fit Approach to Probability-Preserving Prediction of Extremes

Statistics Theory 2014-08-08 v1 Statistics Theory

Abstract

A method is described for predicting extremes values beyond the span of historical data. The method - based on extending a curve fitted to a location- and scale-invariant variation of the double-logarithmic QQ-plot - is simple and intuitive, yet it preserves probability to a good approximation. The procedure is developed on the Generalised Pareto Distribution (GPD), but is applicable to the upper order statistics of a wide class of distributions.

Keywords

Cite

@article{arxiv.1408.1532,
  title  = {An Intuitive Curve-Fit Approach to Probability-Preserving Prediction of Extremes},
  author = {Allan McRobie},
  journal= {arXiv preprint arXiv:1408.1532},
  year   = {2014}
}

Comments

20 pages, 16 figures