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A senior analyst at a financial firm is conducting a presentation for junior analysts on the characteristics and applications of the power law. The focus is on understanding the importance of the power law in analyzing the tails, or extremities, of distribution curves in financial data. Which statement accurately describes the power law?
A
Power law tails are only observed in normal distributions.
B
Power law tails are not present in the Student's t distribution.
C
The power law models the slow decline in the probability of observing large values in thin-tailed distributions.
D
The power law specifies the probability of observing a value greater than a given value.