Applications
Applications of extreme value theory include predicting the probability distribution of:
- Extreme floods
- The amounts of large insurance losses
- Equity risks
- Day to day market risk
- The size of freak waves
- Mutational events during evolution
- Large wildfires
- It can be applied to some characterization of the distribution of the maxima of incomes, like in some surveys done in virtually all the National Offices of Statistics
- Estimate fastest time humans are capable of running the 100 metres sprint.
- Pipeline failures due to pitting corrosion.
Read more about this topic: Extreme Value Theory