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It is known that large deviations of sums of subexponential random variables are most likely realised by deviations of a single random variable. In this article we give a detailed picture of how subexponential random variables are…

Probability · Mathematics 2013-06-25 Inés Armendáriz , Michail Loulakis

In this letter, we present an improved hazard rate twisting technique for the estimation of the probability that a sum of independent but not necessarily identically distributed subexponential Random Variables (RVs) exceeds a given…

Information Theory · Computer Science 2015-04-10 Nadhir Ben Rached , Abla Kammoun , Mohamed-Slim Alouini , Raul Tempone

Let $X_1,\ldots,X_n$ be independent identically distributed random vectors in $\mathbb{R}^d$. We consider upper bounds on $\max_x \mathbb{P}(a_1X_1+\cdots+a_nX_n=x)$ under various restrictions on $X_i$ and the weights $a_i$. When…

Probability · Mathematics 2020-08-04 Tomas Juškevičius , Valentas Kurauskas

In this paper, we study two classes of optimal reinsurance models from perspectives of both insurers and reinsurers by minimizing their convex combination where the risk is measured by a distortion risk measure and the premium is given by a…

Risk Management · Quantitative Finance 2018-07-19 Yuxia Huang , Chuancun Yin

We present some product representations for random variables with the Linnik, Mittag-Leffler and Weibull distributions and establish the relationship between the mixing distributions in these representations. Based on these representations,…

Probability · Mathematics 2016-02-09 V. Yu. Korolev , A. I. Zeifman

The inf-convolution of risk measures is directly related to risk sharing and general equilibrium, and it has attracted considerable attention in mathematical finance and insurance problems. However, the theory is restricted to finite sets…

Risk Management · Quantitative Finance 2022-03-22 Marcelo Brutti Righi , Marlon Ruoso Moresco

We examine how the measure and the number of vertices of the convex hull of a random sample of $n$ points from an arbitrary probability measure in $\mathbf{R}^d$ relates to the wet part of that measure. This extends classical results for…

Probability · Mathematics 2020-10-13 Imre Bárány , Matthieu Fradelizi , Xavier Goaoc , Alfredo Hubard , Günter Rote

In this paper, we use a new approach to prove that the largest eigenvalue of the sample covariance matrix of a normally distributed vector is bigger than the true largest eigenvalue with probability 1 when the dimension is infinite. We…

Probability · Mathematics 2017-08-14 Soufiane Hayou

Suppose X is a random vector, that is distributed uniformly in some n-dimensional convex set. It was conjectured that when the dimension n is very large, there exists a non-zero vector u, such that the distribution of the real random…

Metric Geometry · Mathematics 2009-11-11 B. Klartag

In this paper, we provide a new property of value at risk (VaR), which is a standard risk measure that is widely used in quantitative financial risk management. We show that the subadditivity of VaR for given loss random variables holds for…

Risk Management · Quantitative Finance 2025-10-24 Yuri Imamura , Takashi Kato

Let $\mathbf{X}(n) \in \mathbb{R}^d$ be a sequence of random vectors, where $n\in\mathbb{N}$ and $d = d(n)$. Under certain weakly dependence conditions, we prove that the distribution of the maximal component of $\mathbf{X}$ and the…

Probability · Mathematics 2025-04-22 Mikhail Isaev , Igor Rodionov , Rui-Ray Zhang , Maksim Zhukovskii

Worst-case bounds on the expected shortfall risk given only limited information on the distribution of the random variables has been studied extensively in the literature. In this paper, we develop a new worst-case bound on the expected…

Risk Management · Quantitative Finance 2017-02-12 Anulekha Dhara , Bikramjit Das , Karthik Natarajan

In this paper, an optimization problem with uncertain constraint coefficients is considered. Possibility theory is used to model the uncertainty. Namely, a joint possibility distribution in constraint coefficient realizations, called…

Optimization and Control · Mathematics 2023-09-07 Romain Guillaume , Adam Kasperski , Pawel Zielinski

We consider two recent conjectures of Harrington, Henninger-Voss, Karhadkar, Robinson and Wong concerning relationships between the sum index, difference index and exclusive sum number of graphs. One conjecture posits an exact relationship…

Combinatorics · Mathematics 2023-03-22 John Haslegrave

We prove a large deviation principle for the sum of n independent heavy-tailed random variables, which are subject to a moving cut-off boundary at location n. Conditional on the sum being large at scale n, we show that a finite number of…

Probability · Mathematics 2024-12-17 Céline Kerriou , Peter Mörters

The data of a physical experiment can be represented as a presheaf of probability distributions. A striking feature of quantum theory is that those probability distributions obtained in quantum mechanical experiments do not always admit a…

Category Theory · Mathematics 2022-11-02 Aziz Kharoof , Cihan Okay

We are concerned with the general problem of proving the existence of joint distributions of two discrete random variables $M$ and $N$ subject to infinitely many constraints of the form $\mathbb{P}\left(M=i,N=j\right)=0$. In particular, the…

Probability · Mathematics 2020-03-18 Joseph Squillace

We consider settings in which the distribution of a multivariate random variable is partly ambiguous. We assume the ambiguity lies on the level of the dependence structure, and that the marginal distributions are known. Furthermore, a…

Mathematical Finance · Quantitative Finance 2020-05-27 Stephan Eckstein , Michael Kupper , Mathias Pohl

Continuing the work of [9] who defined the restrictiveness of stochastic orders and calculated the restrictiveness of the usual stochastic order and the likelihood ratio order, we calculate the restrictiveness of the hazard rate order.…

Probability · Mathematics 2021-08-03 Sela Fried

In this paper a class of optimization problems with uncertain linear constraints is discussed. It is assumed that the constraint coefficients are random vectors whose probability distributions are only partially known. Possibility theory is…

Optimization and Control · Mathematics 2021-11-30 Romain Guillaume , Adam Kasperski , Pawel Zielinski