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Downtime of industrial assets such as wind turbines and medical imaging devices is costly. To avoid such downtime costs, companies seek to initiate maintenance just before failure, which is challenging because: (i) Asset failures are…

Optimization and Control · Mathematics 2024-01-10 Peter Verleijsdonk , Willem van Jaarsveld , Stella Kapodistria

The robustness of fault detection algorithms against uncertainty is crucial in the real-world industrial environment. Recently, a new probabilistic design scheme called distributionally robust fault detection (DRFD) has emerged and received…

Optimization and Control · Mathematics 2026-01-16 Yulin Feng , Hailang Jin , Steven X. Ding , Hao Ye , Chao Shang

We consider a reflected process in the positive orthant driven by an exogenous jump process. For a given input process, we show that there exists a unique minimal strong solution to the given particle system up until a certain maximal…

Probability · Mathematics 2026-01-01 Graeme Baker , Ankita Chatterjee

We consider an insurance company in the case when the premium rate is a bounded non-negative random function $c_\zs{t}$ and the capital of the insurance company is invested in a risky asset whose price follows a geometric Brownian motion…

Risk Management · Quantitative Finance 2010-11-08 Serguei Pergamenchtchikov , Zeitouny Omar

We study the rough asymptotic behaviour of a general economic risk model in a discrete setting. Both financial and insurance risks are taken into account. Loss during the first $n$ years is modelled as a random variable…

Probability · Mathematics 2015-11-25 Jaakko Lehtomaa

In this paper, we propose an SIR spread model in a population network coupled with an infrastructure network that has a pathogen spreading in it. We develop a threshold condition to characterize the monotonicity and peak time of a weighted…

Systems and Control · Electrical Eng. & Systems 2026-04-08 José I. Caiza , Junjie Qin , Philip E. Paré

The present work concerns the finite-time ruin probabilities for several bidimensional risk models with constant interest force and correlated Brownian motions.} Under the condition that the two Brownian motions $\{B_1(t), t\ge 0\}$ and…

Probability · Mathematics 2023-06-29 Dan Zhu , Ming Zhou , Chuancun Yin

For two nonstandard renewal risk models, we investigate the precise large deviations of the finite-time ruin probability and a random sum of the net-loss process, and the asymptotics of the random-time ruin probability. Notably, in one of…

Probability · Mathematics 2024-10-11 Yang Chen , Zhaolei Cui , Yuebao Wang

The paper investigates a discrete time Binomial risk model with different types of polices and shock events may influence some of the claim sizes. It is shown that this model can be considered as a particular case of the classical compound…

Probability · Mathematics 2022-10-12 Pavlina K. Jordanova , Evelina Veleva

Robustness of routing policies for networks is a central problem which is gaining increased attention with a growing awareness to safeguard critical infrastructure networks against natural and man-induced disruptions. Routing under limited…

Systems and Control · Computer Science 2012-05-02 Giacomo Como , Ketan Savla , Daron Acemoglu , Munther A. Dahleh , Emilio Frazzoli

Based on a discrete version of the Pollaczeck-Khinchine formula, a general method to calculate the ultimate ruin probability in the Gerber-Dickson risk model is provided when claims follow a negative binomial mixture distribution. The…

Probability · Mathematics 2020-06-03 David J. Santana , Luis Rincon

In this paper we consider dividend problem for an insurance company whose risk evolves as a spectrally negative L\'{e}vy process (in the absence of dividend payments) when Parisian delay is applied. The objective function is given by the…

Portfolio Management · Quantitative Finance 2011-10-19 Irmina Czarna , Zbigniew Palmowski

We consider in this paper a general two-sided jump-diffusion risk model that allows for risky investments as well as for correlation between the two Brownian motions driving insurance risk and investment return. We first introduce the model…

Computational Finance · Quantitative Finance 2013-02-28 Chuancun Yin , Yuzhen Wen

We develop sharp large deviation asymptotics for the probability of ruin in a Markov-dependent stochastic economic environment and study the extremes for some related Markovian processes which arise in financial and insurance mathematics,…

Probability · Mathematics 2009-09-01 Jeffrey F. Collamore

In this note we consider the two-dimensional risk model introduced in Avram et al. \cite{APP08} with constant interest rate. We derive the integral-differential equations of the Laplace transforms, and asymptotic expressions for the finite…

Probability · Mathematics 2012-07-17 Ze-Chun Hu , Bin Jiang

Given a set S of n \geq d points in general position in R^d, a random hyperplane split is obtained by sampling d points uniformly at random without replacement from S and splitting based on their affine hull. A random hyperplane search tree…

Computational Geometry · Computer Science 2011-06-03 Luc Devroye , James King

We study the asymptotic of the ruin probability for a process which is the solution of linear SDE defined by a pair of independent L\'evy processes. Our main interest is the model describing the evolution of the capital reserve of an…

Probability · Mathematics 2018-01-04 Yuri Kabanov , Serguei Pergamenchtchikov

Networked-guarantee loans may cause the systemic risk related concern of the government and banks in China. The prediction of default of enterprise loans is a typical extremely imbalanced prediction problem, and the networked-guarantee make…

Computational Engineering, Finance, and Science · Computer Science 2020-06-09 Dawei Cheng , Zhibin Niu , Yi Tu , Liqing Zhang

In this paper we analyze so-called Parisian ruin probability that happens when surplus process stays below zero longer than fixed amount of time $\zeta>0$. We focus on general spectrally negative L\'{e}vy insurance risk process. For this…

Probability · Mathematics 2010-04-21 Irmina Czarna , Zbigniew Palmowski

We investigate the probability that an insurance portfolio gets ruined within a finite time period under the assumption that the r largest claims are (partly) reinsured. We show that for regularly varying claim sizes the probability of ruin…

Probability · Mathematics 2019-05-15 Hansjörg Albrecher , Bohan Chen , Eleni Vatamidou , Bert Zwart
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