Sunday, 5 November 2017

What is Extreme Value Theory?

It is a branch of statistics that seeks to explain low-probability events. Such techniques are used in a wide range of activities, from predicting the collapse of the share market to the odds of cloudbursts. 

It is widely used in many disciplines such as structural engineering, nance, earth sciences, trac prediction, and geological engineering. Codied by Emil J. Gumbel, a German statistician in inter-War Germany, the basic ideas of extreme value theory or extreme value analysis set the ground for modern data journalism. Gumbel, in fact, used these ideas to ferret patterns of political murder in the Weimar Republic

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