Extreme Value
Extreme value refers to the highest or lowest point in a set of data. In statistics, it is often used to identify outliers or significant deviations from the norm. For example, the maximum temperature recorded in a year or the minimum score on a test can be considered extreme values.
In various fields, such as finance and environmental science, understanding extreme values is crucial. They help in assessing risks and making predictions. For instance, extreme value theory is a branch of statistics that focuses on the behavior of extreme deviations, aiding in the analysis of rare events like natural disasters or market crashes.