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This paper considers the problem of channel coding with a given (possibly suboptimal) maximum-metric decoding rule. A cost-constrained random-coding ensemble with multiple auxiliary costs is introduced, and is shown to achieve error…

Information Theory · Computer Science 2014-03-05 Jonathan Scarlett , Alfonso Martinez , Albert Guillén i Fàbregas

Basel II and Solvency 2 both use the Value-at-Risk (VaR) as the risk measure to compute the Capital Requirements. In practice, to calibrate the VaR, a normal approximation is often chosen for the unknown distribution of the yearly log…

Methodology · Statistics 2013-11-04 Marie Kratz

We consider the classical sequential binary hypothesis testing problem in which there are two hypotheses governed respectively by distributions $P_0$ and $P_1$ and we would like to decide which hypothesis is true using a sequential test. It…

Information Theory · Computer Science 2020-07-01 Yonglong Li , Vincent Y. F. Tan

In this monograph, we prove an asymptotic approximation for integrals of probability densities over sets in finite dimensional euclidean space, which are far away from the origin (asymptotic sets). We use this approximation to investigate…

Probability · Mathematics 2009-09-29 Philippe Barbe

Let $X_1,\dots,X_n$ be independent normal random variables with $X_i\sim N(\mu_i,\sigma_i^2)$, and set $Z=\prod_{i=1}^n X_i$. We derive asymptotic approximations for the right tail probability $\mathbb{P}(Z>x)$ as $x\to\infty$. When at…

Probability · Mathematics 2026-05-08 Džiugas Chvoinikov , Jonas Šiaulys

We present an algorithm for computing asymptotic approximations of roots of polynomials with exp-log function coefficients. The real and imaginary parts of the approximations are given as explicit exp-log expressions. We provide a method…

Symbolic Computation · Computer Science 2019-04-16 Adam Strzeboński

We consider a generalization of the so-called elephant random walk by introducing multiple elephants moving along the integer line, $\mathbb{Z}$. When taking a new step, each elephant considers not only its own previous steps but also the…

Probability · Mathematics 2024-10-31 Deborshi Das

Cr\'epey, Frikha, and Louzi (2025) introduced a nested stochastic approximation algorithm and its multilevel acceleration to compute the value-at-risk and expected shortfall of a random financial loss. We hereby establish central limit…

Risk Management · Quantitative Finance 2026-04-14 Stéphane Crépey , Noufel Frikha , Azar Louzi , Gilles Pagès

This is a continuation of our earlier work [Stochastic Processes and their Applications, 129(1), pp.102--128, 2019] on the random walk in random scenery and in random layered conductance. We complete the picture of upper deviation of the…

Probability · Mathematics 2020-07-07 Jean-Dominique Deuschel , Ryoki Fukushima

We present non-asymptotic two-sided bounds to the log-marginal likelihood in Bayesian inference. The classical Laplace approximation is recovered as the leading term. Our derivation permits model misspecification and allows the parameter…

Statistics Theory · Mathematics 2020-06-23 Anirban Bhattacharya , Debdeep Pati

The dual risk model is a popular model in finance and insurance, which is often used to model the wealth process of a venture capital or high tech company. Optimal dividends have been extensively studied in the literature for a dual risk…

Risk Management · Quantitative Finance 2022-12-08 Arash Fahim , Lingjiong Zhu

Recently, the concept of tail dependence has been discussed in financial applications related to market or credit risk. The multivariate extreme value theory is a proper tool to measure and model dependence, for example, of large loss…

Applications · Statistics 2011-09-27 Marta Ferreira

We study the first- and second-order asymptotics of covert communication over binary-input DMC for three different covertness metrics and under maximum probability of error constraint. When covertness is measured in terms of the relative…

Information Theory · Computer Science 2019-01-09 Mehrdad Tahmasbi , Matthieu R. Bloch

In this paper we extend the work of Owen (2007) by deriving a second order expansion for the slope parameter in logistic regression, when the size of the majority class is unbounded and the minority class is finite. More precisely, we…

Statistics Theory · Mathematics 2022-04-29 Dorian Goldman , Bo Zhang

Asymptotic efficiency of targeted maximum likelihood estimators (TMLE) of target features of the data distribution relies on a a second order remainder being asymptotically negligible. In previous work we proposed a nonparametric MLE termed…

Statistics Theory · Mathematics 2021-07-02 Mark van der Laan , Zeyi Wang , Lars van der Laan

We provide non-asymptotic bounds for first and higher order inclusion probabilities of the rejective sampling model with various size parameters. Further we derive bounds in the semi-definite ordering for matrices that collect (conditional)…

Probability · Mathematics 2022-12-20 Simon Ruetz , Karin Schnass

We derive in this article the asymptotic behavior as well as non-asymptotical estimates of tail of distribution for self-normalized sums of random variables (r.v.) under natural classical norming. We investigate also the case of…

Probability · Mathematics 2017-10-10 E. Ostrovsky , L. Sirota

In a recent article the authors obtained a formula which relates explicitly the tail of risk neutral returns with the wing behavior of the Black Scholes implied volatility smile. In situations where precise tail asymptotics are unknown but…

Probability · Mathematics 2007-05-23 Shalom Benaim , Peter Friz

Motivated by the prominence of Conditional Value-at-Risk (CVaR) as a measure for tail risk in settings affected by uncertainty, we develop a new formula for approximating CVaR based optimization objectives and their gradients from limited…

Methodology · Statistics 2020-08-25 Anand Deo , Karthyek Murthy

In many iterative optimization methods, fixed-point theory enables the analysis of the convergence rate via the contraction factor associated with the linear approximation of the fixed-point operator. While this factor characterizes the…

Systems and Control · Electrical Eng. & Systems 2022-06-22 Trung Vu , Raviv Raich