7The standard maximum entropy method
We begin this chapter with some historical remarks about the concept of entropy of a probability distribution. We decided to do this because now and then a reviewer of a paper, or a colleague who vaguely remembers his high school chemistry classes, has asked us what the problems addressed here have to do with problems in physical chemistry. The answer is nothing of course, even though the origin of the name comes from the natural sciences. We find these comments pertinent and we hope that they are welcome by colleagues in the banking and the insurance industries.
The concept, or should we better say, the name ‘entropy’ has been used (and misused) in many different contexts: in art, economics, politics, besides ...
Get Loss Data Analysis now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
