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We prove a large deviation principle for the sum of n independent heavy-tailed random variables, which are subject to a moving cut-off boundary at location n. Conditional on the sum being large at scale n, we show that a finite number of…

Probability · Mathematics 2024-12-17 Céline Kerriou , Peter Mörters

The purpose of this paper is to show that the use of heavy-tailed distributions in Financial problems is theoretically baseless and can lead to significant misunderstandings. The reason for this the authors see in an incorrect…

Probability · Mathematics 2015-07-29 Lev B Klebanov , Irina V Volchenkova

We suggest approximating the distribution of the sum of independent and identically distributed random variables with a Pareto-like tail by combining extreme value approximations for the largest summands with a normal approximation for the…

Probability · Mathematics 2018-02-05 Ulrich K. Mueller

The distribution function of the sum of i.i.d. random variables of the special form is considered. Such sum describes messages posterior probabilities for random coding in binary symmetric channel. Close non-asymptotic lower and upper…

Information Theory · Computer Science 2025-01-17 M. V. Burnashev

We propose and analyze a generalized splitting method to sample approximately from a distribution conditional on the occurrence of a rare event. This has important applications in a variety of contexts in operations research, engineering,…

Methodology · Statistics 2019-09-10 Zdravko I. Botev , Pierre L'Ecuyer

Waves traveling through random media exhibit random focusing that leads to extremely high wave intensities even in the absence of nonlinearities. Although such extreme events are present in a wide variety of physical systems and the…

Chaotic Dynamics · Physics 2015-06-17 Jakob J. Metzger , Ragnar Fleischmann , Theo Geisel

Human activities can play a crucial role in the statistical properties of observables in many complex systems such as social, technological and economic systems. We demonstrate this by looking into the heavy-tailed distributions of…

Physics and Society · Physics 2009-08-24 Jie-Jun Tseng , Ming-Jer Lee , Sai-Ping Li

We give necessary and sufficient conditions for two sub-vectors of a random vector with a multivariate extreme value distribution, corresponding to the limit distribution of the maximum of a multidimensional stationary sequence with…

Probability · Mathematics 2010-06-09 Clara Viseu , Luísa Pereira , Ana Paula Martins , Helena Ferreira

Superslow diffusion, i.e., the long-time diffusion of particles whose mean-square displacement (variance) grows slower than any power of time, is studied in the framework of the decoupled continuous-time random walk model. We show that this…

Statistical Mechanics · Physics 2010-11-24 S. I. Denisov , H. Kantz

If a random variable is not exponentially integrable, it is known that no concentration inequality holds for an infinite sequence of independent copies. Under mild conditions, we establish concentration inequalities for finite sequences of…

Probability · Mathematics 2007-05-23 Franck Barthe , Patrick Cattiaux , Cyril Roberto

We derive upper bounds on the tail conditional expectation of binomial and Poisson random variables. Those upper bounds are subsequently employed to the problem of obtaining non-asymptotic lower bounds on the probability that the…

Probability · Mathematics 2017-12-07 Christos Pelekis

We evaluate the dependence among the margins of a random vector with Multivariate Extreme Value distribution throughout the expected value of a range and relate this coefficient of dependence with the multivariate tail dependence. Its…

Probability · Mathematics 2013-04-26 Helena Ferreira

This paper considers how to measure the magnitude of the sum of independent random variables in several ways. We give a formula for the tail distribution for sequences that satisfy the so called Levy property. We then give a connection…

Probability · Mathematics 2007-05-23 Pawel Hitczenko , Stephen Montgomery-Smith

Modern risk modelling approaches deal with vectors of multiple components. The components could be, for example, returns of financial instruments or losses within an insurance portfolio concerning different lines of business. One of the…

Probability · Mathematics 2021-05-12 Miriam Hägele , Jaakko Lehtomaa

We show that assuming that the returns are independent when conditioned on the value of their variance (volatility), which itself varies in time randomly, then the distribution of returns is well described by the statistics of the sum of…

Statistical Finance · Quantitative Finance 2025-04-30 Hernán Larralde , Roberto Mota Navarro

We derive exponential bounds for tail of distribution for natural, i.e. under ordinary logarithm, normalized sums of arrays of random variables, not necessarily independent.

The Contextuality-by-Default approach to determining and measuring the (non)contextuality of a system of random variables requires that every random variable in the system be represented by an equivalent set of dichotomous random variables.…

Quantum Physics · Physics 2022-01-05 Janne V. Kujala , Ehtibar N. Dzhafarov

We establish sharp large deviation asymptotics for the maximum order statistic of independent and identically distributed heavy-tailed random variables, valid for all Borel subsets of the right tail. This result yields exact decay rates for…

Probability · Mathematics 2026-01-09 José M. Zapata

In this paper, we propose a new class of distributions by exponentiating the random variables associated with the probability density functions of composite distributions. We also derive some mathematical properties of this new class of…

Methodology · Statistics 2022-04-05 Bowen Liu , Malwane M. A. Ananda

Known Bernstein-type upper bounds on the tail probabilities for sums of independent zero-mean sub-exponential random variables are improved in several ways at once. The new upper bounds have a certain optimality property.

Probability · Mathematics 2022-08-15 Iosif Pinelis