QUANT: What is a distribution's tail

CFA Level I Quant
#1

Hi, if a unimodal distribution has 2 tails, where do they start and end? At the mode (the hump), or the arithmetic mean?

Thanks

#2

always the mean

#3

Generally when we talk about the tail(s) of a distribution, we mean areas that are far removed from the mean/median/mode, but the exact starting point for a tail is quite subjective. For a normal distribution, one author may intend that the tails start at μ ± 3 σ, while another author may intend that they start at μ ± 4σ. There is no clear-cut, universal definition of a tail’s starting point.

#4

The tails are hypothetical analogies.

Technically, a normal distribution is made of two large symmetrical tails.

#5

Technically?

According to what technique?

#6

Just basic pattern recognition.