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The task for a general and useful classification of the tail behaviors of probability distributions still has no satisfactory solution. Due to lack of information outside the range of the data the tails of the distribution should be…

Probability · Mathematics 2019-07-23 Pavlina Jordanova

The relationship between a response variable and its covariates can vary significantly, especially in scenarios where covariates take on extremely high or low values. This paper introduces a max-linear tail regression model specifically…

Methodology · Statistics 2025-02-24 Liujun Chen , Deyuan Li , Zhengjun Zhang

Extreme U-statistics arise when the kernel of a U-statistic has a high degree but depends only on its arguments through a small number of top order statistics. As the kernel degree of the U-statistic grows to infinity with the sample size,…

Statistics Theory · Mathematics 2023-01-09 Jochem Oorschot , Johan Segers , Chen Zhou

Empirical distributions have their in-sample maxima as natural censoring. We look at the "hidden tail", that is, the part of the distribution in excess of the maximum for a sample size of $n$. Using extreme value theory, we examine the…

Statistical Finance · Quantitative Finance 2020-04-14 Nassim Nicholas Taleb

Many random phenomena, including life-testing and environmental data, show positive values and excess zeros, which pose modeling challenges. In life testing, immediate failures result in zero lifetimes, often due to defects or poor quality,…

Methodology · Statistics 2026-02-06 Shivshankar Nila , Ishapathik Das , N. Balakrishna

Heavy tailed distributions present a tough setting for inference. They are also common in industrial applications, particularly with Internet transaction datasets, and machine learners often analyze such data without considering the biases…

Applications · Statistics 2016-10-14 Matt Taddy , Hedibert Freitas Lopes , Matt Gardner

We study the consistency and weak convergence of the conditional tail function and conditional Hill estimators under broad dependence assumptions for a heavy-tailed response sequence and a covariate sequence. Consistency is established…

Statistics Theory · Mathematics 2026-02-04 Martin Bladt , Laurits Glargaard , Theodor Henningsen

In this paper, a novel approach to the problem of estimating the heavy-tail exponent alpha>0 of a distribution is proposed. It is based on the fact that block-maxima of size m of the independent and identically distributed data scale at a…

Statistics Theory · Mathematics 2007-06-13 Stilian A. Stoev , George Michailidis , Murad S. Taqqu

On the basis of Nelson-Aalen nonparametric estimator of the cumulative distribution function, we provide a weak approximation to tail product-limit process for randomly right-censored heavy-tailed data. In this context, a new consistent…

Statistics Theory · Mathematics 2016-07-25 Brahim Brahimi , Djamel Meraghni , Abdelhakim Necir

In this paper, we investigate the extreme-value methodology, to propose an improved estimator of the conditional tail expectation ($CTE$) for a loss distribution with a finite mean but infinite variance. The present work introduces a new…

Statistics Theory · Mathematics 2020-02-11 Mohamed Laidi , Abdelaziz Rassoul , Hamid Ould Rouis

A wide range of natural and social phenomena result in observables whose distributions can be well approximated by a power-law decay. The well-known Hill estimator of the tail exponent provides results which are in many respects superior to…

Data Analysis, Statistics and Probability · Physics 2009-05-20 Éva Rácz , János Kertész , Zoltán Eisler

Inference over tails is usually performed by fitting an appropriate limiting distribution over observations that exceed a fixed threshold. However, the choice of such threshold is critical and can affect the inferential results. Extreme…

Statistical Finance · Quantitative Finance 2019-02-26 Chiara Lattanzi , Manuele Leonelli

We consider the evolution of scale-free networks according to preferential attachment schemes and show the conditions for which the exponent characterizing the degree distribution is bounded by upper and lower values. Our framework is an…

Statistical Finance · Quantitative Finance 2013-01-07 João P. da Cruz , Pedro G. Lind

Standard statistical analysis is unable to provide reliable confidence intervals on expectation values of probability distributions that do not satisfy the conditions of the central limit theorem. We present a regression-based estimator of…

Data Analysis, Statistics and Probability · Physics 2019-06-24 Pablo Lopez Rios , Gareth J. Conduit

The probability distribution of number of ties of an individual in a social network follows a scale-free power-law. However, how this distribution arises has not been conclusively demonstrated in direct analyses of people's actions in…

Physics and Society · Physics 2014-08-25 Lev Muchnik , Sen Pei , Lucas C. Parra , Saulo D. S. Reis , Jose S. Andrade, , Shlomo Havlin , Hernan A. Makse

We introduce a method to estimate simultaneously the tail and the threshold parameters of an extreme value regression model. This standard model finds its use in finance to assess the effect of market variables on extreme loss distributions…

Methodology · Statistics 2023-04-17 Julien Hambuckers , Marie Kratz , Antoine Usseglio-Carleve

We propose a semiparametric method for fitting the tail of a heavy-tailed population given a relatively small sample from that population and a larger sample from a related background population. We model the tail of the small sample as an…

Methodology · Statistics 2014-10-21 William Fithian , Stefan Wager

This article is devoted to the study of tail index estimation based on i.i.d. multivariate observations, drawn from a standard heavy-tailed distribution, i.e. of which 1-d Pareto-like marginals share the same tail index. A multivariate…

Statistics Theory · Mathematics 2014-04-10 Stéphan Clémençon , Antoine Dematteo

This paper introduces a new classification scheme - head/tail breaks - in order to find groupings or hierarchy for data with a heavy-tailed distribution. The heavy-tailed distributions are heavily right skewed, with a minority of large…

Data Analysis, Statistics and Probability · Physics 2013-10-22 Bin Jiang

We consider a model for multivariate data with heavy-tailed marginal distributions and a Gaussian dependence structure. The different marginals in the model are allowed to have non-identical tail behavior in contrast to most popular…

Methodology · Statistics 2023-05-23 Bikramjit Das