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In a number of applications, particularly in financial and actuarial mathematics, it is of interest to characterize the tail distribution of a random variable $V$ satisfying the distributional equation $V\stackrel{\mathcal{D}}{=}f(V)$,…

Probability · Mathematics 2014-07-04 Jeffrey F. Collamore , Guoqing Diao , Anand N. Vidyashankar

By their very nature, rare event probabilities are expensive to compute; they are also delicate to estimate as their value strongly depends on distributional assumptions on the model parameters. Hence, understanding the sensitivity of the…

Numerical Analysis · Mathematics 2021-10-28 Michael Merritt , Alen Alexanderian , Pierre Gremaud

In this paper, we propose an efficient importance sampling algorithm for rare event simulation under copula models. In the algorithm, the derived optimal probability measure is based on the criterion of minimizing the variance of the…

Computation · Statistics 2025-04-07 Siang Cheng , Cheng-Der Fuh , Tianxiao Pang

We give sharp, uniform estimates for the probability that a random walk of n steps on the reals avoids a half-line [y,infinity) given that it ends at the point x. The estimates hold for general continuous or lattice distributions provided…

Probability · Mathematics 2009-06-18 Kevin Ford

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

Importance sampling (IS) is a technique that enables statistical estimation of output performance at multiple input distributions from a single nominal input distribution. IS is commonly used in Monte Carlo simulation for variance reduction…

Methodology · Statistics 2025-05-07 Yijuan Liang , Guangxin Jiang , Michael C. Fu

We present an algorithm for finding the probabilities of rare events in nonequilibrium processes. The algorithm consists of evolving the system with a modified dynamics for which the required event occurs more frequently. By keeping track…

Statistical Mechanics · Physics 2011-04-07 Anupam Kundu , Sanjib Sabhapandit , Abhishek Dhar

We consider the problem of estimating the population probability distribution given a finite set of multivariate samples, using the maximum entropy approach. In strict keeping with Jaynes' original definition, our precise formulation of the…

Data Analysis, Statistics and Probability · Physics 2007-07-13 Sabbir Rahman , Mahbub Majumdar

Rare event probability estimation is an important topic in reliability analysis. Stochastic methods, such as importance sampling, have been developed to estimate such probabilities but they often fail in high dimension. In this paper, we…

Computation · Statistics 2021-08-24 Maxime El-Masri , Jérôme Morio , Florian Simatos

Understanding rare events is critical across domains ranging from signal processing to reliability and structural safety, extreme-weather forecasting, and insurance. The analysis of rare events is a computationally challenging problem,…

Probability · Mathematics 2025-11-18 Anya Katsevich , Alexander Katsevich

We consider systems of stochastic differential equations with multiple scales and small noise and assume that the coefficients of the equations are ergodic and stationary random fields. Our goal is to construct provably-efficient importance…

Probability · Mathematics 2015-09-29 Konstantinos Spiliopoulos

Importance sampling is a technique that is commonly used to speed up Monte Carlo simulation of rare events. However, little is known regarding the design of efficient importance sampling algorithms in the context of queueing networks. The…

Probability · Mathematics 2009-09-29 Paul Dupuis , Ali Devin Sezer , Hui Wang

We describe a new approach to the rare-event Monte Carlo sampling problem. This technique utilizes a symmetrization strategy to create probability distributions that are more highly connected and thus more easily sampled than their…

Statistical Mechanics · Physics 2015-05-28 Nuria Plattner , J. D. Doll , Paul Dupuis , Hui Wang , Yufei Liu , J. E. Gubernatis

This paper considers importance sampling for estimation of rare-event probabilities in a specific collection of Markovian jump processes used for e.g. modelling of credit risk. Previous attempts at designing importance sampling algorithms…

Probability · Mathematics 2021-12-02 Boualem Djehiche , Henrik Hult , Pierre Nyquist

In this paper, we propose a novel robust stochastic optimization approach with a distinctive consideration for rare events, in which divergence measures are used to bound the event-wise ambiguity sets. This is done by using the Poisson…

Optimization and Control · Mathematics 2021-09-14 Aakil M. Caunhye , Douglas Alem

In dense Erd\H{o}s-R\'enyi random graphs, we are interested in the events where large numbers of a given subgraph occur. The mean behavior of subgraph counts is known, and only recently were the related large deviations results discovered.…

Probability · Mathematics 2014-04-03 Shankar Bhamidi , Jan Hannig , Chia Ying Lee , James Nolen

The probability of rare and extreme events is an important quantity for design purposes. However, computing the probability of rare events can be expensive because only a few events, if any, can be observed. To this end, it is necessary to…

Computational Physics · Physics 2020-01-08 Malik Hassanaly , Venkat Raman

Importance sampling is often used in machine learning when training and testing data come from different distributions. In this paper we propose a new variant of importance sampling that can reduce the variance of importance sampling-based…

Machine Learning · Computer Science 2016-11-11 Philip S. Thomas , Emma Brunskill

Large deviation theory has provided important clues for the choice of importance sampling measures for Monte Carlo evaluation of exceedance probabilities. However, Glasserman and Wang [Ann. Appl. Probab. 7 (1997) 731--746] have given…

Probability · Mathematics 2007-05-23 Hock Peng Chan , Tze Leung Lai

We consider the problem of efficient simulation estimation of the density function at the tails, and the probability of large deviations for a sum of independent, identically distributed, light-tailed and non-lattice random vectors. The…

Probability · Mathematics 2017-04-26 Santanu Dey , Sandeep Juneja , Ankush Agarwal