Options:
1. They are a good model for some financial data.
2.the mean is a good representation of the distribution.
3.they are the best choice for the most type of data.
Answer: 2.the mean is a good representation of the distribution.
Step-by-step explanation:
A fat-tailed distribution is showing skewness or also kurtosis compared to a normal distribution. This type of distribution or crisis can be found in many fields such as economic, science, political science, earth science, physics, geopolitics, and more.
There are Mean, Mode, and Median types of measure and the best one is the Mean that is why answer two is correct. The mean is often representing the best measure.