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Which of the following are valid approaches for extreme value analysis given a dataset:
1. The Block Maxima approach
2. Least squares approach
3. Maximum likelihood approach
4. Peak-over-thresholds approach
Suggested Answer: C
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For EVT, we use the block maxima or the peaks-over-threshold methods. These provide us the data points that can be fitted to a GEV distribution.
Least squares and maximum likelihood are methods that are used for curve fitting, and they have a variety of applications across risk management.
35 comments · newest first
LA
Lashawnda
10 months ago
Least squares? Not sure that fits in extreme value analysis.
AL
Aliza
10 months ago
I think only 1, 3, and 4 are valid approaches.
TA
Tammara
10 months ago
Wait, all of them? That seems a bit much!
LA
Lawanda
10 months ago
Totally agree with B, those are the main ones!
SH
Shaunna
11 months ago
Block Maxima and Peak-over-thresholds are definitely valid!
CU
Curt
11 months ago
I feel like all of them could be valid in some context, but I lean towards just 1 and 4 being the main ones.
KR
Kristal
11 months ago
I practiced a similar question, and I believe options 1, 3, and 4 are the most common for extreme value analysis.
DE
Delpha
11 months ago
I think the Maximum Likelihood approach is definitely valid, but I can't recall if the Block Maxima is always used.
MA
Ma
12 months ago
I remember the Block Maxima and Peak-over-thresholds methods being discussed a lot in class, but I'm not entirely sure about the least squares approach.
SH
Shala
12 months ago
Hmm, I'm a bit confused by this question. I know the Block Maxima and Peak-over-thresholds approaches are used for extreme value analysis, but I'm not sure about the other two options. Maybe I should try to eliminate the ones I'm less sure about and see if that helps me narrow it down.
LE
Leatha
12 months ago
I'm pretty confident I know the answer to this one. The Block Maxima and Peak-over-thresholds approaches are definitely valid for extreme value analysis, and the Maximum likelihood approach is also a common technique. I'll mark B as my answer.
KA
Kami
1 year ago
Okay, let's see. The Block Maxima and Peak-over-thresholds approaches seem like they could be relevant, but I'm not sure about the Least squares and Maximum likelihood approaches. I'll need to review my notes on extreme value analysis to be sure.
DA
Dana
1 year ago
Hmm, this looks like a tricky one. I'll need to think carefully about the differences between these approaches and which ones are valid for extreme value analysis.
FR
Francene
2 years ago
The Peak-over-thresholds approach sounds like the most extreme way to analyze extreme values. I'm just picturing someone standing on a cliff, yelling 'PEAK!' every time a data point exceeds the threshold.
HE
Helaine
1 year ago
User 4: I agree, using a combination of different approaches can give a more comprehensive analysis.
DE
Delpha
1 year ago
User 3: I prefer the Maximum likelihood approach for a more statistical approach.
CL
Clarence
1 year ago
User 2: Yeah, it does sound intense. But it's one of the valid approaches for extreme value analysis.
AL
Albert
1 year ago
User 1: I think the Peak-over-thresholds approach is a bit dramatic.
JO
Jonell
2 years ago
I can't believe they're including the Least squares approach as an option. That's like using a hammer to perform open-heart surgery!
ST
Stevie
2 years ago
All of the approaches listed seem like they could be valid for extreme value analysis. This question is really testing our understanding of the different techniques, not just memorization.
EU
Eulah
1 year ago
User 3: I think all of the approaches listed could be valid for extreme value analysis.
LA
Lashanda
1 year ago
User 2: I believe it's actually 2 and 3 that are valid.
ST
Staci
2 years ago
User 1: I think the valid approaches for extreme value analysis are 1, 3, and 4.
LA
Lauran
2 years ago
Maximum likelihood is a standard technique for parameter estimation, so I'd expect it to be a valid approach for extreme value analysis. The question seems to be testing our knowledge of different statistical methods.
SH
Shalon
1 year ago
B) 1, 3 and 4
RI
Rikki
1 year ago
Maximum likelihood is commonly used for parameter estimation in extreme value analysis.
WI
Willodean
2 years ago
A) 2 and 3
NI
Nikita
2 years ago
I think the correct answer is D) All of the above because all the approaches mentioned can be used for extreme value analysis.
TI
Timothy
2 years ago
The Block Maxima approach and the Peak-over-thresholds approach seem to be the most relevant for extreme value analysis. I'm not sure why the Least squares approach would be considered valid here.
GE
Geraldine
2 years ago
Really? I didn't realize that. I thought it was just the Block Maxima and Peak-over-thresholds approaches.
FE
Felix
2 years ago
The Least squares approach is also valid for extreme value analysis.
LU
Luann
2 years ago
I agree, those two approaches are commonly used for extreme value analysis.
BE
Beckie
2 years ago
I think the Block Maxima approach and the Peak-over-thresholds approach are both valid.
KA
Karl
2 years ago
I believe the valid approaches are the Least squares approach and the Maximum likelihood approach.
VA
Valda
2 years ago
I think the valid approaches for extreme value analysis are the Block Maxima approach and the Peak-over-thresholds approach.