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We formulate and solve a variant of the quickest detection problem which features false negatives. A standard Brownian motion acquires a drift at an independent exponential random time which is not directly observable. Based on the…

Optimization and Control · Mathematics 2026-02-24 Tiziano De Angelis , Jhanvi Garg , Quan Zhou

Consider the motion of a Brownian particle in two or more dimensions, whose coordinate processes are standard Brownian motions with zero drift initially, and then at some random/unobservable time, one of the coordinate processes gets a…

Probability · Mathematics 2020-07-30 Philip A. Ernst , Goran Peskir

The problem of quickest detection of a change in the distribution of a sequence of random variables is studied. The objective is to detect the change with the minimum possible delay, subject to constraints on the rate of false alarms and…

Methodology · Statistics 2024-12-31 Yingze Hou , Hoda Bidkhori , Taposh Banerjee

In this paper we extend the Shiryaev's quickest change detection formulation by also accounting for the cost of observations used before the change point. The observation cost is captured through the average number of observations used in…

Statistics Theory · Mathematics 2011-11-23 Taposh Banerjee , Venugopal V. Veeravalli

We solve two stochastic control problems in which a player tries to minimize or maximize the exit time from an interval of a Brownian particle, by controlling its drift. The player can change from one drift to another but is subject to a…

Probability · Mathematics 2014-08-19 Robert C. Dalang , Laura Vinckenbosch

We study the Bayesian problems of detecting a change in the drift rate of an observable diffusion process with linear and exponential penalty costs for a detection delay. The optimal times of alarms are found as the first times at which the…

Statistics Theory · Mathematics 2011-11-08 Pavel V. Gapeev , Albert N. Shiryaev

We study the problem of optimally managing an inventory with unknown demand trend. Our formulation leads to a stochastic control problem under partial observation, in which a Brownian motion with non-observable drift can be singularly…

Optimization and Control · Mathematics 2022-11-28 Salvatore Federico , Giorgio Ferrari , Neofytos Rodosthenous

Consider a storage system where the content is driven by a Brownian motion absent control. At any time, one may increase or decrease the content at a cost proportional to the amount of adjustment. A decrease of the content takes effect…

Probability · Mathematics 2016-08-05 Zhen Xu , Jiheng Zhang , Rachel Q. Zhang

We study the Wiener disorder detection problem where each observation is associated with a positive cost. In this setting, a strategy is a pair consisting of a sequence of observation times and a stopping time corresponding to the…

Probability · Mathematics 2021-07-14 Erhan Bayraktar , Erik Ekstrom , Jia Guo

In the Wiener disorder problem, the drift of a Wiener process changes suddenly at some unknown and unobservable disorder time. The objective is to detect this change as quickly as possible after it happens. Earlier work on the Bayesian…

Probability · Mathematics 2010-10-25 Semih Onur Sezer

We study the quickest detection problem of a sudden change in the arrival rate of a Poisson process from a known value to an unknown and unobservable value at an unknown and unobservable disorder time. Our objective is to design an alarm…

Probability · Mathematics 2007-08-03 Erhan Bayraktar , Savas Dayanik , Ioannis Karatzas

The multiple disorder problem seeks to determine a sequence of stopping times which are as close as possible to the unknown times of disorders at which the observation process changes its probability characteristics. We derive closed form…

Applications · Statistics 2010-11-02 Pavel V. Gapeev

This work examines the problem of sequential detection of a change in the drift of a Brownian motion in the case of two-sided alternatives. Applications to real life situations in which two-sided changes can occur are discussed.…

Information Theory · Computer Science 2007-07-13 Olympia Hadjiliadis , H. Vincent Poor

We consider the quickest change detection problem where both the parameters of pre- and post- change distributions are unknown, which prevents the use of classical simple hypothesis testing. Without additional assumptions, optimal solutions…

Machine Learning · Computer Science 2021-06-10 Firas Jarboui , Viannet Perchet

The problem of detecting changes in the statistical properties of a stochastic system and time series arises in various branches of science and engineering. It has a wide spectrum of important applications ranging from machine monitoring to…

Statistics Theory · Mathematics 2012-11-19 Venugopal V. Veeravalli , Taposh Banerjee

Consider the motion of a Brownian particle in three dimensions, whose two spatial coordinates are standard Brownian motions with zero drift, and the remaining (unknown) spatial coordinate is a standard Brownian motion with a non-zero drift.…

Probability · Mathematics 2018-12-19 Philip Ernst , Goran Peskir , Quan Zhou

We study a classical Bayesian statistics problem of sequentially testing the sign of the drift of an arithmetic Brownian motion with the $0$-$1$ loss function and a constant cost of observation per unit of time for general prior…

Probability · Mathematics 2015-09-03 Erik Ekström , Juozas Vaicenavicius

A multi-source quickest detection problem is considered. Assume there are two independent Poisson processes $X^{1}$ and $X^{2}$ with disorder times $\theta_{1}$ and $\theta_{2}$, respectively; that is, the intensities of $X^1$ and $X^2$…

Computational Engineering, Finance, and Science · Computer Science 2007-07-13 Erhan Bayraktar , H. Vincent Poor

We study a continuous time Bayesian quickest detection problem in which observation times are a scarce resource. The agent, limited to making a finite number of discrete observations, must adaptively decide his observation strategy to…

Probability · Mathematics 2014-12-04 Erhan Bayraktar , Ross Kravitz

We construct a Bayesian sequential test of two simple hypotheses about the value of the unobservable drift coefficient of a Brownian motion, with a possibility to change the initial decision at subsequent moments of time for some penalty.…

Probability · Mathematics 2020-07-28 Mikhail Zhitlukhin
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