Heavy-tailed distribution

A heavy-tailed distribution is a type of probability distribution that has a tail, which is the part of the distribution that represents extreme values, that is significantly heavier or more significant than that of the exponential distribution. This means that it has a higher probability of producing values far from the mean compared to lighter-tailed distributions, such as the normal distribution. In practical terms, this implies that heavy-tailed distributions can model phenomena where extreme events have a considerable chance of occurring.