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On the Shadow Moments of Apparently Infinite-Mean Phenomena

Authors :
Pasquale Cirillo
Nassim Nicholas Taleb
Source :
Unifying Themes in Complex Systems IX ISBN: 9783319966601
Publication Year :
2018
Publisher :
Springer International Publishing, 2018.

Abstract

We propose an approach to compute the conditional moments of fat-tailed phenomena that, only looking at data, could be mistakenly considered as having infinite mean. This type of problems manifests itself when a random variable Y has a heavy-tailed distribution with an extremely wide yet bounded support.

Details

ISBN :
978-3-319-96660-1
ISBNs :
9783319966601
Database :
OpenAIRE
Journal :
Unifying Themes in Complex Systems IX ISBN: 9783319966601
Accession number :
edsair.doi...........5575148782025696ebcbd44eed1d725c
Full Text :
https://doi.org/10.1007/978-3-319-96661-8_16