English

Optimal Allocations for Sample Average Approximation

Computation 2018-11-20 v1

Abstract

We consider a single stage stochastic program without recourse with a strictly convex loss function. We assume a compact decision space and grid it with a finite set of points. In addition, we assume that the decision maker can generate samples of the stochastic variable independently at each grid point and form a sample average approximation (SAA) of the stochastic program. Our objective in this paper is to characterize an asymptotically optimal linear sample allocation rule, given a fixed sampling budget, which maximizes the decay rate of probability of making false decision.

Keywords

Cite

@article{arxiv.1811.07186,
  title  = {Optimal Allocations for Sample Average Approximation},
  author = {Prateek Jaiswal and Harsha Honnappa and Raghu Pasupathy},
  journal= {arXiv preprint arXiv:1811.07186},
  year   = {2018}
}