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The Markov-modulated Poisson process is utilised for count modelling in a variety of areas such as queueing, reliability, network and insurance claims analysis. In this paper, we extend the Markov-modulated Poisson process framework through…

Risk Management · Quantitative Finance 2020-08-06 Benjamin Avanzi , Greg Taylor , Bernard Wong , Alan Xian

The paper studies a probabilistic notion of causes in Markov chains that relies on the counterfactuality principle and the probability-raising property. This notion is motivated by the use of causes for monitoring purposes where the aim is…

Logic in Computer Science · Computer Science 2021-07-09 Christel Baier , Florian Funke , Simon Jantsch , Jakob Piribauer , Robin Ziemek

In this work, we consider a differential description of the evolution of the state of a reaction-diffusion system under environmental fluctuations. We are interested in estimating the state of the system when only partial observations are…

Optimization and Control · Mathematics 2023-04-13 Augusto Magalhães , Otacílio B. L. Neto , Francesco Corona

Monitoring plan preconditions can allow for replanning when a precondition fails, generally far in advance of the point in the plan where the precondition is relevant. However, monitoring is generally costly, and some precondition failures…

Artificial Intelligence · Computer Science 2013-01-18 Craig Boutilier

Parisian ruin probability in the classical Brownian risk model, unlike the standard ruin probability can not be explicitly calculated even in one-dimensional setup. Resorting on asymptotic theory, we derive in this contribution an…

Probability · Mathematics 2020-01-28 Nikolai Kriukov

This paper introduces a cure rate survival model by assuming that the time to the event of interest follows a beta prime distribution and that the number of competing causes of the event of interest follows a negative binomial distribution.…

Methodology · Statistics 2018-12-20 Jeremias Leão , Marcelo Bourguignon , Manoel Santos-Neto , Helton Saulo

This survey treats the problem of ruin in a risk model when assets earn investment income. In addition to a general presentation of the problem, topics covered are a presentation of the relevant integro-differential equations, exact and…

Risk Management · Quantitative Finance 2008-12-18 Jostein Paulsen

We propose to approximate the conditional expectation of a spatial random variable given its nearest-neighbour observations by an additive function. The setting is meaningful in practice and requires no unilateral ordering. It is capable of…

Statistics Theory · Mathematics 2016-03-28 Zudi Lu , Arvid Lundervold , Dag Tjøstheim , Qiwei Yao

Probability forecasts of events are routinely used in climate predictions, in forecasting default probabilities on bank loans or in estimating the probability of a patient's positive response to treatment. Scoring rules have long been used…

Statistics Theory · Mathematics 2012-02-24 Tze Leung Lai , Shulamith T. Gross , David Bo Shen

Generalized linear models, such as logistic regression, are widely used to model the association between a treatment and a binary outcome as a function of baseline covariates. However, the coefficients of a logistic regression model…

Methodology · Statistics 2022-01-04 Jiaqi Yin , Sonia Markes , Thomas S. Richardson , Linbo Wang

This paper concerns an insurance firm's surplus process observed at renewal inspection times, with a focus on assessing the probability of the surplus level dropping below zero. For various types of inter-inspection time distributions, an…

Probability · Mathematics 2026-01-14 Florine Kuipers , Michel Mandjes , Sara Morcy

Markov networks are popular models for discrete multivariate systems where the dependence structure of the variables is specified by an undirected graph. To allow for more expressive dependence structures, several generalizations of Markov…

Methodology · Statistics 2021-03-30 Johan Pensar , Henrik Nyman , Jukka Corander

The paper concerns the probabilistic evaluation of plans in the presence of unmeasured variables, each plan consisting of several concurrent or sequential actions. We establish a graphical criterion for recognizing when the effects of a…

Artificial Intelligence · Computer Science 2013-02-21 Judea Pearl , James M. Robins

Extreme shock models have been introduced in Gut and H\"usler (1999) to study systems that at random times are subject to shock of random magnitude. These systems break down when some shock overcomes a given resistance level. In this paper…

Other Statistics · Statistics 2010-10-19 Pasquale Cirillo , Jürg Hüsler

Markovian population models are suitable abstractions to describe well-mixed interacting particle systems in situation where stochastic fluctuations are significant due to the involvement of low copy particles. In molecular biology,…

Quantitative Methods · Quantitative Biology 2014-01-17 Christoph Zechner , Federico Wadehn , Heinz Koeppl

Stochastic optimization problems often involve the expectation in its objective. When risk is incorporated in the problem description as well, then risk measures have to be involved in addition to quantify the acceptable risk, often in the…

Statistics Theory · Mathematics 2012-09-18 Alois Pichler

We study the stochastic dynamics of a system of interacting species in a stochastic environment by means of a continuous-time Markov chain with transition rates depending on the state of the environment. Models of gene regulation in systems…

Dynamical Systems · Mathematics 2019-12-03 Daniele Cappelletti , Abhishek Pal Majumder , Carsten Wiuf

Robots are increasingly used to carry out critical missions in extreme environments that are hazardous for humans. This requires a high degree of operational autonomy under uncertain conditions, and poses new challenges for assuring the…

Artificial Intelligence · Computer Science 2020-12-08 Xingyu Zhao , Valentin Robu , David Flynn , Fateme Dinmohammadi , Michael Fisher , Matt Webster

In this paper we study the effect of network structure between agents and objects on measures for systemic risk. We model the influence of sharing large exogeneous losses to the financial or (re)insuance market by a bipartite graph. Using…

Risk Management · Quantitative Finance 2015-10-05 Oliver Kley , Claudia Klüppelberg , Gesine Reinert

A characteristic of existing predictive process monitoring techniques is to first construct a predictive model based on past process executions, and then use it to predict the future of new ongoing cases, without the possibility of updating…

Artificial Intelligence · Computer Science 2023-10-26 Chiara Di Francescomarino , Chiara Ghidini , Fabrizio Maria Maggi , Williams Rizzi , Cosimo Damiano Persia
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