👉 In probability theory and statistics, a "truncated" distribution is one where all observations are truncated to a finite number of data points. For example, if you have a dataset with 100 observations but want only 50, then your dataset would be considered truncated. In the context of econometrics, a "truncated" distribution refers to a non-parametric model that is not defined at or near its mean. In financial mathematics, for instance, when analyzing stock prices, you
