Block Maxima Method

The Block Maxima Method is a statistical approach used to analyze rare, extreme events—like record floods or financial crashes. It involves dividing a large set of data into equal time periods (blocks), such as months or years, and then identifying the highest value within each block. These maximum values are then studied to understand the pattern of extreme events and predict their potential size or frequency in the future. This method helps specialists assess risks and prepare for unlikely but impactful events by focusing on the most extreme data points in each period.