Difference between revisions of "Barbell Distribution"

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Latest revision as of 12:31, 3 September 2019

Definition

Barbell distribution is an informal name given to any Distribution that exhibits a range that seems to be a composite of two extreme (separated) domains. A more formal name is Bimodal distribution

Issues and Challenges

  • In the context of the distribution of Credit Portfolio characteristics a barbell distribution may involve risk patterns that are not visible in aggregates / averages
  • Modelling multimodal distributions is generally more complex (involves large number of parameters)

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