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1 point by radikal 3331 days ago | link | parent

Wouldn't it be helpful to demonstrate why the T distro is a better fit here?

Probability of Model | Data



1 point by twiecki 3328 days ago | link

I did mention this during the talk but you have to read between the lines to get that from the slides. The reason is two-fold: The T-distribution is more robust to outliers, and returns have heavy tails (which increases the chance of extreme values).

And yes, I also did model comparison and the T-distribution explains the data much better. In a talk though visuals tend to work better.

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