tail behavior

Tail behavior refers to how a distribution behaves at its extremes, specifically concerning rare events or outliers. In statistics, the "tail" of a distribution represents the far ends, where values are much lower or much higher than average. Understanding tail behavior is crucial for assessing risks, especially in areas like finance, insurance, and climate science, where infrequent but severe events can have significant impacts. Analyzing tail behavior helps predict and prepare for these extremes, enabling better decision-making and risk management.