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Extreme value theory is a progressive branch of statistics dealing with extreme
events. The restriction of the statistical analysis to this special field
is justified by the fact that the extreme data, or the extreme part of the
sample, can be of outstanding importance in studying floods, hurricanes, air
pollutants, extreme claim sizes, life spans, etc.
Regression analysis is one of the most widely used techniques for analyzing multifactor
data. Its broad appeal and usefulness result from the conceptually logical
process of using an equation to express the relationship between a variable of interest
(the response) and a set of related predictor variables. Regression analysis is
also interesting theoretically because of elegant underlying mathematics and a well -
developed statistical theory. Successful use of regression requires an appreciation
of both the theory and the practical problems that typically arise when the technique
is employed with real - world data.