Actuarial Mathematics
Asymptotic behavior refers to the description of the behavior of functions as they approach a certain limit, typically as the input values tend towards infinity. In the context of extreme value theory and heavy-tailed distributions, asymptotic behavior helps in understanding how extreme events behave in relation to the overall distribution, especially for rare but impactful occurrences. It provides insights into the likelihood of extreme values and informs modeling techniques used in risk assessment and statistical inference.
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