For Gaussian distributions, the expected deviation above any threshold k-sigma shrinks as k increases (e.g., above 3-sigma is ~0.8 sigma, above 5-sigma is ~5.1 sigma), whereas for extremist distributions, the expected deviation stays proportionally constant and explosively scales in absolute terms, meaning old-age expectations become nonsensical in power-law domains.
factualpending
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Nassim TalebEvidence Quote
“what's the expected company higher than uh was 10 million in sales 15 milon million 100 million sales 150 million the average uh two billion in sales 3 billion”
Created: 8/11/2026, 7:35:40 AM
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