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MLMC techniques for discontinuous functions

Numerical Analysis 2023-09-06 v2 Numerical Analysis

Abstract

The Multilevel Monte Carlo (MLMC) approach usually works well when estimating the expected value of a quantity which is a Lipschitz function of intermediate quantities, but if it is a discontinuous function it can lead to a much slower decay in the variance of the MLMC correction. This article reviews the literature on techniques which can be used to overcome this challenge in a variety of different contexts, and discusses recent developments using either a branching diffusion or adaptive sampling.

Keywords

Cite

@article{arxiv.2301.02882,
  title  = {MLMC techniques for discontinuous functions},
  author = {Michael B Giles},
  journal= {arXiv preprint arXiv:2301.02882},
  year   = {2023}
}

Comments

15 pages, 6 figures, submitted to proceedings of MCQMC22 conference

R2 v1 2026-06-28T08:06:06.795Z