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A decision must often be made between heavy-tailed and Gaussian errors for a regression or a time series model, and the t-distribution is frequently used when it is assumed that the errors are heavy-tailed distributed. The performance of…

Computation · Statistics 2015-05-11 J. Martin van Zyl

We introduce a new actuarial tail-shape index, the $\theta$-index, based on a probability equal level relationship between Value at Risk and Expected Shortfall. The index is defined at each tail probability level as the parameter value for…

Risk Management · Quantitative Finance 2026-01-29 Georgios I. Papayiannis , Georgios Psarrakos

Long-tailed classification poses a challenge due to its heavy imbalance in class probabilities and tail-sensitivity risks with asymmetric misprediction costs. Recent attempts have used re-balancing loss and ensemble methods, but they are…

Machine Learning · Computer Science 2023-03-22 Bolian Li , Ruqi Zhang

Modeling and predicting extreme movements in GDP is notoriously difficult and the selection of appropriate covariates and/or possible forms of nonlinearities are key in obtaining precise forecasts. In this paper, our focus is on using large…

Econometrics · Economics 2023-09-25 Jan Prüser , Florian Huber

Estimation of tail quantities, such as expected shortfall or Value at Risk, is a difficult problem. We show how the theory of nonlinear expectations, in particular the Data-robust expectation introduced in [5], can assist in the…

Statistics Theory · Mathematics 2018-02-15 Samuel N. Cohen

Current out-of-distribution (OOD) detection methods typically assume balanced in-distribution (ID) data, while most real-world data follow a long-tailed distribution. Previous approaches to long-tailed OOD detection often involve balancing…

Computer Vision and Pattern Recognition · Computer Science 2024-12-19 Yina He , Lei Peng , Yongcun Zhang , Juanjuan Weng , Zhiming Luo , Shaozi Li

Count data are omnipresent in many applied fields, often with overdispersion. With mixtures of Poisson distributions representing an elegant and appealing modelling strategy, we focus here on how the tail behaviour of the mixing…

Statistics Theory · Mathematics 2023-05-29 Samuel Valiquette , Gwladys Toulemonde , Jean Peyhardi , Éric Marchand , Frédéric Mortier

Object frequency in the real world often follows a power law, leading to a mismatch between datasets with long-tailed class distributions seen by a machine learning model and our expectation of the model to perform well on all classes. We…

Computer Vision and Pattern Recognition · Computer Science 2020-03-25 Muhammad Abdullah Jamal , Matthew Brown , Ming-Hsuan Yang , Liqiang Wang , Boqing Gong

In this paper we introduce an efficient fat-tail measurement framework that is based on the conditional second moments. We construct a goodness-of-fit statistic that has a direct interpretation and can be used to assess the impact of…

Statistical Finance · Quantitative Finance 2022-11-01 Damian Jelito , Marcin Pitera

Estimating the tail index parameter is one of the primal objectives in extreme value theory. For heavy-tailed distributions the Hill estimator is the most popular way to estimate the tail index parameter. Improving the Hill estimator was…

Methodology · Statistics 2018-06-05 László Németh , András Zempléni

There are many ways of measuring and modeling tail-dependence in random vectors: from the general framework of multivariate regular variation and the flexible class of max-stable vectors down to simple and concise summary measures like the…

Probability · Mathematics 2022-12-05 Anja Janßen , Sebastian Neblung , Stilian Stoev

We present a new Monte Carlo methodology for the accurate estimation of the distribution of the sum of dependent log-normal random variables. The methodology delivers statistically unbiased estimators for three distributional quantities of…

Computation · Statistics 2017-06-20 Zdravko Botev , Robert Salomone , Daniel MacKinlay

We review recent progress in modeling credit risk for correlated assets. We start from the Merton model which default events and losses are derived from the asset values at maturity. To estimate the time development of the asset values, the…

Risk Management · Quantitative Finance 2018-03-02 Andreas Mühlbacher , Thomas Guhr

Chest X-rays (CXRs) are a medical imaging modality that is used to infer a large number of abnormalities. While it is hard to define an exhaustive list of these abnormalities, which may co-occur on a chest X-ray, few of them are quite…

Image and Video Processing · Electrical Eng. & Systems 2023-09-11 Arsh Verma

Recently, long-tailed image classification harvests lots of research attention, since the data distribution is long-tailed in many real-world situations. Piles of algorithms are devised to address the data imbalance problem by biasing the…

Computer Vision and Pattern Recognition · Computer Science 2023-02-06 Chaowei Fang , Dingwen Zhang , Wen Zheng , Xue Li , Le Yang , Lechao Cheng , Junwei Han

The key to successful statistical analysis of bivariate extreme events lies in flexible modelling of the tail dependence relationship between the two variables. In the extreme value theory literature, various techniques are available to…

Methodology · Statistics 2025-05-05 Emma S. Simpson , Jonathan A. Tawn

In this paper, we introduce reduced-bias estimators for the estimation of the tail index of a Pareto-type distribution. This is achieved through the use of a regularised weighted least squares with an exponential regression model for…

Methodology · Statistics 2022-04-19 E. Ocran , R. Minkah , G. Kallah-Dagadu , K. Doku-Amponsah

The modelling of multivariate extreme events is important in a wide variety of applications, including flood risk analysis, metocean engineering and financial modelling. A wide variety of statistical techniques have been proposed in the…

Methodology · Statistics 2025-09-16 Callum John Rowlandson Murphy-Barltrop , Ed Mackay , Philip Jonathan

This paper proposes a specification test for the conventional distributional assumptions of error terms in binary choice models, focusing on its tail properties. Based on extreme value theory, we first establish that the tail index of the…

Econometrics · Economics 2026-03-31 Ting Ji , Laura Liu , Yulong Wang , Jiahe Xing

The issue related to the quantification of the tail risk of cryptocurrencies is considered in this paper. The statistical methods used in the study are those concerning recent developments in Extreme Value Theory (EVT) for weakly dependent…

Risk Management · Quantitative Finance 2023-11-30 Andrea Teruzzi