GPT4 is repeating 2nd hand material abt "Statistical Consequences of Fat Tails" w/o knowing what the book is about. It is not about Fat Tails but CONSEQUENCES on stat methods, the law of large (medium) numbers, & decisions under uncertainty.
Also makes economists' elementary mistake (explained in SCOFT): rare event are NOT more frequent but more CONSEQUENTIAL in determining the total properties. Events >1 STD are LESS frequent than in Gaussian. Extreme fat tails (Cauchy): 1 SINGLE event ends up having all the properties!
It almost has the understanding of, say
@Ptetlock!
It misses that Fat Tails make usual metrics like correlation, STD, portfolio theory, etc. unusable, particularly under ellipticality.