New study reveals better model for analyzing extreme values in data.
The article compares different models for analyzing extreme values when we know whether the extreme value index is positive or negative. It shows that using a generalized Pareto distribution is equivalent to a specific model when the extreme value index is negative, leading to better results. When the extreme value index is positive, using a generalized Pareto distribution may be better in certain cases, depending on a second-order parameter and the extreme value index itself.