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Identifying the instances of jumps in a discrete-time-series sample of a jump diffusion model is a challenging task. We have developed a novel statistical technique for jump detection and volatility estimation in a return time series data…

Statistical Finance · Quantitative Finance 2022-03-22 Milan Kumar Das , Anindya Goswami , Sharan Rajani

The reversible jump algorithm is a useful Markov chain Monte Carlo method introduced by Green (1995) that allows switches between subspaces of differing dimensionality, and therefore, model selection. Although this method is now…

Methodology · Statistics 2019-04-18 Philippe Gagnon , Mylène Bédard , Alain Desgagné

In this article we consider the problem of choosing an optimal sampling scheme for the regression problem simultaneously with that of model selection. We consider a batch type approach and an on-line approach following algorithms recently…

Statistics Theory · Mathematics 2018-01-30 Ana Karina Fermin , Carenne Ludeña

Beta regression models are a suitable choice for continuous response variables on the unity interval. Random effects add further flexibility to the models and accommodate data structures such as hierarchical, repeated measures and…

Applications · Statistics 2017-04-25 Wagner H. Bonat , Paulo J. Ribeiro , Walmes Marque Zeviani

Network surveys of key populations at risk for HIV are an essential part of the effort to understand how the epidemic spreads and how it can be prevented. Estimation of population values from the sample data has been probematical, however,…

Applications · Statistics 2019-09-12 Steve Thompson

Variable selection for Gaussian process models is often done using automatic relevance determination, which uses the inverse length-scale parameter of each input variable as a proxy for variable relevance. This implicitly determined…

Methodology · Statistics 2019-04-24 Topi Paananen , Juho Piironen , Michael Riis Andersen , Aki Vehtari

This paper studies the stochastic modeling of market drawdown events and the fair valuation of insurance contracts based on drawdowns. We model the asset drawdown process as the current relative distance from the historical maximum of the…

Pricing of Securities · Quantitative Finance 2016-03-11 Hongzhong Zhang , Tim Leung , Olympia Hadjiliadis

A learned generative model often produces biased statistics relative to the underlying data distribution. A standard technique to correct this bias is importance sampling, where samples from the model are weighted by the likelihood ratio…

Machine Learning · Statistics 2019-11-05 Aditya Grover , Jiaming Song , Alekh Agarwal , Kenneth Tran , Ashish Kapoor , Eric Horvitz , Stefano Ermon

News might trigger jump arrivals in financial time series. The "bad" and "good" news seems to have distinct impact. In the research, a double exponential jump distribution is applied to model downward and upward jumps. Bayesian double…

Statistical Finance · Quantitative Finance 2014-04-09 Maciej Kostrzewski

A common method for assessing validity of Bayesian sampling or approximate inference methods makes use of simulated data replicates for parameters drawn from the prior. Under continuity assumptions, quantiles of functions of the simulated…

Computation · Statistics 2019-11-21 Xuejun Yu , David J. Nott , Minh-Ngoc Tran , Nadja Klein

Fitting models to data is an important part of the practice of science. Advances in machine learning have made it possible to fit more -- and more complex -- models, but have also exacerbated a problem: when multiple models fit the data…

Methodology · Statistics 2025-10-27 Alexandre René , André Longtin

The statistics and machine learning communities have recently seen a growing interest in classification-based approaches to two-sample testing. The outcome of a classification-based two-sample test remains a rejection decision, which is not…

Statistics Theory · Mathematics 2022-11-15 Loris Michel , Jeffrey Näf , Nicolai Meinshausen

This paper presents a method for incorporating risk aversion into existing decision tree models used in economic evaluations. The method involves applying a probability weighting function based on rank dependent utility theory to reduced…

Theoretical Economics · Economics 2024-01-24 Jacob Smith

Forecasting the number of trips in bike-sharing systems and its volatility over time is crucial for planning and optimizing such systems. This paper develops timeseries models to forecast hourly count timeseries data, and estimate its…

Methodology · Statistics 2020-11-18 Alireza Hosseini , Reza Hosseini

We study investment and insurance demand decisions for an agent in a theoretical continuous-time expected utility maximization model that combines risky assets with an (exogenous) insurable background risk. This risk takes the form of a…

Mathematical Finance · Quantitative Finance 2023-03-09 Hugo E. Ramirez , Rafael Serrano

A popular method for variance reduction in observational causal inference is propensity-based trimming, the practice of removing units with extreme propensities from the sample. This practice has theoretical grounding when the data are…

Methodology · Statistics 2024-01-30 Samir Khan , Johan Ugander

The prediction of future insurance claims based on observed risk factors, or covariates, help the actuary set insurance premiums. Typically, actuaries use parametric regression models to predict claims based on the covariate information.…

Methodology · Statistics 2026-04-14 Mostafa Shams Esfand Abadi , Kaushik Ghosh

Incorporating information about the target distribution in proposal mechanisms generally produces efficient Markov chain Monte Carlo algorithms (or at least, algorithms that are more efficient than uninformed counterparts). For instance, it…

Computation · Statistics 2021-08-27 Philippe Gagnon

Network models are applied across many domains where data can be represented as a network. Two prominent paradigms for modeling networks are statistical models (probabilistic models for the observed network) and mechanistic models (models…

Methodology · Statistics 2019-06-20 Sixing Chen , Antonietta Mira , Jukka-Pekka Onnela

This paper addresses the identification of insurance models with multidimensional screening where insurees have private information about their risk and risk aversion. The model includes a random damage and the possibility of several…

Mathematical Finance · Quantitative Finance 2016-01-18 Gaurab Aryal , Isabelle Perrigne , Quang Vuong