terminology question

#1
what is the statistical terminology that would describe;

and event with extremely low probability of occuring, but IF that even does occur, the impact is MASSIVE

An example of this would be something like

winning the lottery
dying of a random heart attack


Help would be much appreciated......thanks!
 

mp83

TS Contributor
#3
In actuarial science that't the low frequency-high severity events. In fact that's the dangers you should seek insurance for. They also call them extreme or extremal events. You can model them using Extreme Value Theory, which is a cool yet mathematically painful branch of Probability Theory.