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When estimating the risk of a P&L from historical data or Monte Carlo simulation, the robustness of the estimate is important. We argue here that Hampel's classical notion of qualitative robustness is not suitable for risk measurement and…

Risk Management · Quantitative Finance 2014-01-15 Volker Krätschmer , Alexander Schied , Henryk Zähle

We introduce overdispersed black-box variational inference, a method to reduce the variance of the Monte Carlo estimator of the gradient in black-box variational inference. Instead of taking samples from the variational distribution, we use…

Machine Learning · Statistics 2016-03-04 Francisco J. R. Ruiz , Michalis K. Titsias , David M. Blei

Computation of extreme quantiles and tail-based risk measures using standard Monte Carlo simulation can be inefficient. A method to speed up computations is provided by importance sampling. We show that importance sampling algorithms,…

Probability · Mathematics 2009-09-21 Henrik Hult , Jens Svensson

Simulation-based inference plays a major role in modern statistics, and often employs either reallocating (as in a randomization test) or resampling (as in bootstrapping). Reallocating mimics random allocation to treatment groups, while…

Statistics Theory · Mathematics 2017-08-08 Kari Lock Morgan

For high volume data streams and large data warehouses, sampling is used for efficient approximate answers to aggregate queries over selected subsets. Mathematically, we are dealing with a set of weighted items and want to support queries…

Data Structures and Algorithms · Computer Science 2007-05-23 Mario Szegedy , Mikkel Thorup

This paper gives a straightforward self-contained proof of the formula for the variance of the number of comparisons used by the Quicksort sorting algorithm when pivots are chosen uniformly at random. The result has been known for some time…

Probability · Mathematics 2010-06-22 Vasileios Iliopoulos , David Penman

In this work, we develop an importance sampling estimator by coupling the reduced-order model and the generative model in a problem setting of uncertainty quantification. The target is to estimate the probability that the quantity of…

Machine Learning · Statistics 2024-12-20 Xiaoliang Wan , Shuangqing Wei

Quantification of measurement uncertainty is crucial for robust scientific inference, yet accurate estimates of this uncertainty remain elusive for ecological measures of diversity. Here, we address this longstanding challenge by deriving a…

Populations and Evolution · Quantitative Biology 2024-02-27 Andreas Tiffeau-Mayer

We provide a detailed importance sampling analysis for variance reduction in stochastic volatility models. The optimal change of measure is obtained using a variety of results from large and moderate deviations: small-time, large-time,…

Pricing of Securities · Quantitative Finance 2021-11-02 Marc Geha , Antoine Jacquier , Zan Zuric

In the current paper, the estimation of the probability density function and the cumulative distribution function of the Topp-Leone distribution is considered. We derive the following estimators: maximum likelihood estimator, uniformly…

Methodology · Statistics 2017-01-17 Lazhar Benkhelifa

Anecdotally, using an estimated propensity score is superior to the true propensity score in estimating the average treatment effect based on observational data. However, this claim comes with several qualifications: it holds only if…

Methodology · Statistics 2023-04-03 Fangzhou Su , Wenlong Mou , Peng Ding , Martin J. Wainwright

In this paper, we propose a novel and generic family of multiple importance sampling estimators. We first revisit the celebrated balance heuristic estimator, a widely used Monte Carlo technique for the approximation of intractable…

Computation · Statistics 2019-04-09 Mateu Sbert , Víctor Elvira

A new method based on the rejection sampling for finding statistical tests is proposed. This method is conceptually intuitive, easy to implement, and applicable for arbitrary dimension. To illustrate its potential applicability, three…

Methodology · Statistics 2026-03-11 Markku Kuismin

Sampling and Variational Inference (VI) are two large families of methods for approximate inference that have complementary strengths. Sampling methods excel at approximating arbitrary probability distributions, but can be inefficient. VI…

Machine Learning · Statistics 2022-03-07 Richard D. Lange , Ari Benjamin , Ralf M. Haefner , Xaq Pitkow

Importance sampling is a popular method for efficient computation of various properties of a distribution such as probabilities, expectations, quantiles etc. The output of an importance sampling algorithm can be represented as a weighted…

Probability · Mathematics 2016-04-18 Henrik Hult , Pierre Nyquist

In many real-world engineering systems, the performance or reliability of the system is characterised by a scalar parameter. The distribution of this performance parameter is important in many uncertainty quantification problems, ranging…

Methodology · Statistics 2022-10-03 Robert Millar , Jinglai Li , Hui Li

Importance sampling is a widely used technique to estimate properties of a distribution. This paper investigates trading-off some bias for variance by adaptively winsorizing the importance sampling estimator. The novel winsorizing…

Computation · Statistics 2021-02-10 Paulo Orenstein

In this paper, we introduce efficient ensemble Markov Chain Monte Carlo (MCMC) sampling methods for Bayesian computations in the univariate stochastic volatility model. We compare the performance of our ensemble MCMC methods with an…

Computation · Statistics 2014-12-10 Alexander Y. Shestopaloff , Radford M. Neal

Importance sampling is a common technique for Monte Carlo approximation, including Monte Carlo approximation of p-values. Here it is shown that a simple correction of the usual importance sampling p-values creates valid p-values, meaning…

Computation · Statistics 2011-04-12 Matthew T. Harrison

We propose an iterative estimating equations procedure for analysis of longitudinal data. We show that, under very mild conditions, the probability that the procedure converges at an exponential rate tends to one as the sample size…

Statistics Theory · Mathematics 2007-12-18 Jiming Jiang , Yihui Luan , You-Gan Wang