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This paper introduces a comprehensive framework for Financial Information Theory by applying information-theoretic concepts such as entropy, Kullback-Leibler divergence, mutual information, normalized mutual information, and transfer…

Portfolio Management · Quantitative Finance 2025-11-21 Miquel Noguer i Alonso

Subsampling techniques can reduce the computational costs of processing big data. Practical subsampling plans typically involve initial uniform sampling and refined sampling. With a subsample, big data inferences are generally built on the…

Methodology · Statistics 2022-09-13 Yan Fan , Yang Liu , Yukun Liu , Jing Qin

In this article, we consider the parameter estimation of regression model with pth order autoregressive (AR(p)) error term. We use the Maximum Lq-likelihood (MLq) estimation method that is proposed by Ferrari and Yang (2010a), as a robust…

Statistics Theory · Mathematics 2018-04-23 Yesim Guney , Yetkin Tuac , Senay Ozdemir , Olcay Arslan

The so-called matrix-element method (MEM) has long been used successfully as a classification tool in particle physics searches. In the presence of invisible final state particles, the traditional MEM typically assigns probabilities to an…

High Energy Physics - Phenomenology · Physics 2019-08-26 Stefan von Buddenbrock , Olivier Mattelaer , Michael Spannowsky

Consider a random sample from a bivariate distribution function $F$ in the max-domain of attraction of an extreme-value distribution function $G$. This $G$ is characterized by two extreme-value indices and a spectral measure, the latter…

Statistics Theory · Mathematics 2009-09-01 John H. J. Einmahl , Johan Segers

Optimal dimensionality reduction methods are proposed for the Bayesian inference of a Gaussian linear model with additive noise in presence of overabundant data. Three different optimal projections of the observations are proposed based on…

Statistics Theory · Mathematics 2018-02-13 Loïc Giraldi , Olivier P. Le Maître , Ibrahim Hoteit , Omar M. Knio

The principle of maximum entropy is a broadly applicable technique for computing a distribution with the least amount of information possible while constrained to match empirically estimated feature expectations. However, in many real-world…

Machine Learning · Computer Science 2022-08-16 Kenneth Bogert , Yikang Gui , Prashant Doshi

Consider a finite-sized, multidimensional system in parameter state a. The system is either at statistical equilibrium or general non-equilibrium, and may obey either classical or quantum physics. L. Hardy's mathematical axioms provide a…

General Physics · Physics 2015-06-19 B. R. Frieden , R. A. Gatenby

This paper considers maximum likelihood (ML) estimation in a large class of models with hidden Markov regimes. We investigate consistency of the ML estimator and local asymptotic normality for the models under general conditions which allow…

Statistics Theory · Mathematics 2021-12-07 Demian Pouzo , Zacharias Psaradakis , Martin Sola

A maximum likelihood methodology for the parameters of models with an intractable likelihood is introduced. We produce a likelihood-free version of the stochastic approximation expectation-maximization (SAEM) algorithm to maximize the…

Methodology · Statistics 2018-01-17 Umberto Picchini

The theory of Extreme Physical Information (EPI) is used to deduce a probability density function (PDF) of a system that exhibits a power law tail. The computed PDF is useful to study and fit several observed distributions in complex…

Data Analysis, Statistics and Probability · Physics 2011-03-21 Ricardo Bonilla , Roberto Zarama , Juan Alejandro Valdivia

Maximum mutual information (MMI) is a model selection criterion used for hidden Markov model (HMM) parameter estimation that was developed more than twenty years ago as a discriminative alternative to the maximum likelihood criterion for…

Computation and Language · Computer Science 2010-02-04 Steven Wegmann

Nonparametric empirical Bayes methods provide a flexible and attractive approach to high-dimensional data analysis. One particularly elegant empirical Bayes methodology, involving the Kiefer-Wolfowitz nonparametric maximum likelihood…

Methodology · Statistics 2014-07-11 Lee H. Dicker , Sihai D. Zhao

When an expert operates a perilous dynamic system, ideal constraint information is tacitly contained in their demonstrated trajectories and controls. The likelihood of these demonstrations can be computed, given the system dynamics and task…

Systems and Control · Electrical Eng. & Systems 2021-02-26 David L. McPherson , Kaylene C. Stocking , S. Shankar Sastry

Mixed linear regression (MLR) model is among the most exemplary statistical tools for modeling non-linear distributions using a mixture of linear models. When the additive noise in MLR model is Gaussian, Expectation-Maximization (EM)…

Machine Learning · Statistics 2021-05-14 Babak Barazandeh , Ali Ghafelebashi , Meisam Razaviyayn , Ram Sriharsha

In a regular full exponential family, the maximum likelihood estimator (MLE) need not exist in the traditional sense. However, the MLE may exist in the completion of the exponential family. Existing algorithms for finding the MLE in the…

Statistics Theory · Mathematics 2020-11-30 Daniel J. Eck , Charles J. Geyer

The advent of data science has spurred interest in estimating properties of distributions over large alphabets. Fundamental symmetric properties such as support size, support coverage, entropy, and proximity to uniformity, received most…

Information Theory · Computer Science 2016-11-29 Jayadev Acharya , Hirakendu Das , Alon Orlitsky , Ananda Theertha Suresh

Optimization results are one method for understanding neural computation from Nature's perspective and for defining the physical limits on neuron-like engineering. Earlier work looks at individual properties or performance criteria and…

Neurons and Cognition · Quantitative Biology 2017-12-21 William B Levy , Toby Berger , Mustafa Sungkar

We study three fundamental statistical-learning problems: distribution estimation, property estimation, and property testing. We establish the profile maximum likelihood (PML) estimator as the first unified sample-optimal approach to a wide…

Machine Learning · Statistics 2019-07-12 Yi Hao , Alon Orlitsky

Researchers have developed several theoretical methods for predicting epidemic thresholds, including the mean-field like (MFL) method, the quenched mean-field (QMF) method, and the dynamical message passing (DMP) method. When these methods…

Physics and Society · Physics 2016-04-26 Wei Wang , Quan-Hui Liu , Lin-Feng Zhong , Ming Tang , Hui Gao , H. Eugene Stanley