tail event
A 'tail event' describes rare occurrences with significant impact, often found at the extreme ends of probability distributions.
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Definition
C1Statistics
(technical, academic)An occurrence found at the extreme ends of a probability distribution, indicating it is rare but can have significant consequences.
Example
- The likelihood of a tail event in this distribution is very low, but its impact can be substantial.
C1Finance
(technical)An infrequent and unpredictable occurrence that can significantly impact markets or investments.
Example
- The financial crisis of 2008 is often cited as a tail event that reshaped global markets.
C1Risk Management
(technical)A rare and significant occurrence that deviates from normal expectations, often causing substantial losses.
Example
- Insurance companies must prepare for tail events to mitigate potential large-scale losses.
Similar
Terms that have similar or relatively close meanings to "tail event":
tail endlong tailfat tailtag endtop and taildragon's tailtrail behind