Affiliations: [a] Department of Mathematics and Statistics, Faculty of Applied Sciences and Technology, Universiti Tun Hussein Onn Malaysia, Pagoh, Johor, Malaysia
| [b] Department of Biosciences, Saveetha School of Engineering, Saveetha Institute of medical and technical Sciences, Chennai, India
Correspondence:
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Corresponding author. Kavikumar Jacob, Department of Mathematics and Statistics, Faculty of Applied Sciences and Technology, Universiti Tun Hussein Onn Malaysia, 84600 Pagoh, Johor, Malaysia. E-mail: [email protected].
Abstract: The Copula concept has long been used in many applications, especially in the financial field. This concept was first used in 1959 by Sklar in his mathematical work and greatly assisted in the applications of financial and insurance areas. The copula functions have been widely used in dependence modeling. In this study, we look at how the copula began to develop from a basic form to a more advanced form through studies that previous researchers have made. Throughout this study, we find various types of the copula, and each exhibits its own characteristics lying under two main families, Elliptical and Archimedean copulas. Our findings suggest that copula is vital in solving problems in statistical dependence measures and joint marginal distribution functions. This comprehensive study served as a review paper on the development of copulas from their initial existence to their latest evolution.
Keywords: Copula, financial field, decision-making, insurance, marginal distribution
