Standard deviation became the traditional measure of dispersion because Fisher proved it was more statistically efficient than mean absolute deviation under Gaussian assumptions, but this efficiency advantage does not hold under fat-tail conditions, yet the field persisted with standard deviation without accounting for domain-specific distributional assumptions.

factualpending

Speaker

Nassim Taleb

Evidence Quote

“in the gassian case it's more efficient than uh mean absolute deviation”

Source

Nassim Taleb — Meditations on Extremistan— Joseph Noel Walker
Created: 8/11/2026, 7:35:40 AM

My Notes

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