# Extreme value theory

**Extreme value theory** is a branch of

statistics dealing with the extreme deviations from the mean of

probability distributions. Extreme value theory is important for assessing

risk for highly unusual events, such as 100-year floods.

Applications of extreme value theory:

- predicting extreme floods
- predicting the amounts of large insurance losses
- predicting equity risks

**History of extreme value theory**
Founded by the German mathematician, pacifist, and anti-Nazi campaigner Emil Julius Gumbel who described the Gumbel distribution in the 1950s.

- --
*please write more about this subject*

References:

- Gumbel, E.J.(1958). Statistics of Extremes. Columbia University Press.

See also:

## External links