
Statistical Consequences of Fat Tails
Real World Preasymptotics, Epistemology, and Applications
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Statistical Consequences of Fat Tails
Real World Preasymptotics, Epistemology, and Applications
When someone tells you it was a 10 sigma event, meaning it is 10 standard deviations and it is Gaussian; unless the information came from God, you can reject the Gaussian distribution for that domain. We show the derivations.
This is extracted from my book.