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Lévy / stable: heavy-tailed, stable under sums

Heavy-tailed, stable under sums — the only family where the sum stays in the family. CLT fails when variance is infinite; this is what replaces it.

Method · Levy Stable
Prereqs: CLT
Intro

Lévy is what happens when you weaken the CLT's finite-variance assumption — it generalises Normal to a family with stable α ∈ (0, 2]. Lévy's α = 1/2 is the extreme heavy-tailed special case.

✓ Intro · expand
Independent · Legal