The ratio of standard deviation to mean absolute deviation is the best indicator of distribution fatness; for a Gaussian it is approximately 1.25, but for power-law distributions with alpha below 2 it becomes infinite, providing a simple diagnostic for detecting tail behavior.
factualpending
Speaker
Nassim TalebEvidence Quote
“the ratio stand deviation me deviation is uh the best indicat of fatness”
Created: 8/11/2026, 7:35:40 AM
My Notes
Loading notes...