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When assessing the impact of extreme events, it is often not just a single component, but the combined behaviour of several components which is important. Statistical modelling using multivariate generalized Pareto (GP) distributions…

Methodology · Statistics 2018-02-07 Anna Kiriliouk , Holger Rootzén , Johan Segers , Jennifer L. Wadsworth

Distinguishing power-law distributions from other heavy-tailed distributions is challenging, and this task is often further complicated by subsampling effects. In this work, we evaluate the performance of two commonly used methods for…

Data Analysis, Statistics and Probability · Physics 2024-05-09 Silja Sormunen , Lasse Leskelä , Jari Saramäki

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

Whether an extreme observation is an outlier or not, depends strongly on the corresponding tail behaviour of the underlying distribution. We develop an automatic, data-driven method to identify extreme tail behaviour that deviates from the…

Methodology · Statistics 2019-12-06 Shrijita Bhattacharya , Jan Beirlant

This paper proposes a scoring-rule-based method for ranking predictive distributions in the Fr\'echet domain that is able to distinguish between different tail indices. The approach is built on normalized order statistics and exploits…

Methodology · Statistics 2026-03-26 Martin Bladt , Christoffer Øhlenschlæger

Estimating extreme quantiles is an important task in many applications, including financial risk management and climatology. More important than estimating the quantile itself is to insure zero coverage error, which implies the quantile…

Applications · Statistics 2025-05-08 Douglas E. Johnston

Modelling non-homogeneous and multi-component data is a problem that challenges scientific researchers in several fields. In general, it is not possible to find a simple and closed form probabilistic model to describe such data. That is why…

Methodology · Statistics 2017-12-27 Nehla Debbabi , Marie Kratz , Mamadou Mboup

Threshold selection is a fundamental problem in any threshold-based extreme value analysis. While models are asymptotically motivated, selecting an appropriate threshold for finite samples is difficult and highly subjective through standard…

Methodology · Statistics 2024-10-30 Conor Murphy , Jonathan A. Tawn , Zak Varty

A common bottleneck in evaluating extremal performance measures is that, due to their very nature, tail data are often very limited. The conventional approach selects the best probability distribution from tail data using parametric…

Computation · Statistics 2018-01-03 Henry Lam , Clementine Mottet

Composite probability models have shown very promising results for modeling claim severity data comprised of small, moderate, and large losses. In this paper, we introduce three classes of parametric composite regression models with a…

Applications · Statistics 2022-08-03 Girish Aradhye , Deepesh Bhati , George Tzougas

The paper proposes an original methodology for constructing quantitative statistical models based on multidimensional distribution functions constructed on the basis of the insurance companies' data on inshurance policies (including…

Risk Management · Quantitative Finance 2019-08-15 Valery Baskakov , Nikolay Sheparnev , Evgeny Yanenko

Due to the presence of reporting and settlement delay, claim data sets collected by non-life insurance companies are typically incomplete, facing right censored claim count and claim severity observations. Current practice in non-life…

Risk Management · Quantitative Finance 2023-02-10 Jonas Crevecoeur , Katrien Antonio , Stijn Desmedt , Alexandre Masquelein

The masses of data now available have opened up the prospect of discovering weak signals using machine-learning algorithms, with a view to predictive or interpretation tasks. As this survey of recent results attempts to show, bringing…

Statistics Theory · Mathematics 2026-05-06 Stephan Clémençon , Anne Sabourin

Accurate modeling is essential in integer-valued real phenomena, including the distribution of entire data, zero-inflated (ZI) data, and discrete exceedances. The Poisson and Negative Binomial distributions, along with their ZI variants,…

Methodology · Statistics 2025-10-20 Touqeer Ahmad , Irshad Ahmad Arshad

Within the Solvency II framework the insurance industry requires a realistic modelling of the risk processes relevant for its business. Every insurance company should be capable of running a holistic risk management process to meet this…

Risk Management · Quantitative Finance 2010-09-23 Magda Schiegl

The extreme value theory is very popular in applied sciences including Finance, economics, hydrology and many other disciplines. In univariate extreme value theory, we model the data by a suitable distribution from the general max-domain of…

Methodology · Statistics 2019-05-09 Abhik Ghosh

In extreme value inference it is a fundamental problem how the target value is required to be extreme by the extreme value theory. In iid settings this study both theoretically and numerically compares tail estimators, which are based on…

Statistics Theory · Mathematics 2024-09-04 Taku Moriyama

The tail of the distribution of a sum of a random number of independent and identically distributed nonnegative random variables depends on the tails of the number of terms and of the terms themselves. This situation is of interest in the…

Probability · Mathematics 2008-12-10 Christian Y. Robert , Johan Segers

Statistical modeling of multivariate and spatial extreme events has attracted broad attention in various areas of science. Max-stable distributions and processes are the natural class of models for this purpose, and many parametric families…

Methodology · Statistics 2017-08-09 Clement Dombry , Sebastian Engelke , Marco Oesting

Causal inference for extreme events has many potential applications in fields such as climate science, medicine and economics. We study the extremal quantile treatment effect of a binary treatment on a continuous, heavy-tailed outcome.…

Methodology · Statistics 2023-07-06 David Deuber , Jinzhou Li , Sebastian Engelke , Marloes H. Maathuis
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