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We consider the problem of accurately measuring the credit risk of a portfolio consisting of loss exposures such as loans, bonds and other financial assets. We are particularly interested in the probability of large portfolio losses. We…

Computation · Statistics 2015-11-03 Kevin Lam , Zdravko Botev

Rare events are events that are expected to occur infrequently, or more technically, those that have low probabilities (say, order of $10^{-3}$ or less) of occurring according to a probability model. In the context of uncertainty…

Computation · Statistics 2015-08-21 James L. Beck , Konstantin M. Zuev

We consider importance sampling as well as other properly weighted samples with respect to a target distribution $\pi$ from a different point of view. By considering the associated weights as sojourn times until the next jump, we define…

Statistics Theory · Mathematics 2007-06-13 S. Malefaki , G. Iliopoulos

This study presents an importance sampling formulation based on adaptively relaxing parameters from the indicator function and/or the probability density function. The formulation embodies the prevalent mathematical concept of relaxing a…

Applications · Statistics 2024-04-11 Jianhua Xian , Ziqi Wang

We consider the problem of estimating rare event probabilities, focusing on systems whose evolution is governed by differential equations with uncertain input parameters. If the system dynamics is expensive to compute, standard sampling…

Computation · Statistics 2019-11-05 Siddhant Wahal , George Biros

In this work, we propose an algorithm to simulate rare events for electronic circuit design. Our approach heavily relies on a smart use of importance sampling, which enables us to tackle probabilities of the magnitude 10 --10. Not only can…

Probability · Mathematics 2021-09-20 Xavier Jonsson , Jérôme Lelong

We introduce Path-ZVA: an efficient simulation technique for estimating the probability of reaching a rare goal state before a regeneration state in a (discrete-time) Markov chain. Standard Monte Carlo simulation techniques do not work well…

Probability · Mathematics 2018-07-02 Daniel Reijsbergen , Pieter-Tjerk de Boer , Werner Scheinhardt , Sandeep Juneja

Minibatching is a very well studied and highly popular technique in supervised learning, used by practitioners due to its ability to accelerate training through better utilization of parallel processing power and reduction of stochastic…

Machine Learning · Computer Science 2016-02-09 Dominik Csiba , Peter Richtárik

In this paper we study rare events associated to solutions of elliptic partial differential equations with spatially varying random coefficients. The random coefficients follow the lognormal distribution, which is determined by a Gaussian…

Numerical Analysis · Mathematics 2014-04-17 Jingchen Liu , Jianfeng Lu , Xiang Zhou

Selecting between competing statistical models is a challenging problem especially when the competing models are non-nested. In this paper we offer a simple solution by devising an algorithm which combines MCMC and importance sampling to…

As the number of samples and dimensionality of optimization problems related to statistics an machine learning explode, block coordinate descent algorithms have gained popularity since they reduce the original problem to several smaller…

Machine Learning · Computer Science 2016-06-24 Rémi Flamary , Alain Rakotomamonjy , Gilles Gasso

The aim of this paper is to introduce a new Monte Carlo method based on importance sampling techniques for the simulation of stochastic differential equations. The main idea is to combine random walk on squares or rectangles methods with…

Probability · Mathematics 2010-10-22 Madalina Deaconu , Antoine Lejay

Rare event probability estimation is an important topic in reliability analysis. Stochastic methods, such as importance sampling, have been developed to estimate such probabilities but they often fail in high dimension. In this paper, we…

Computation · Statistics 2021-08-24 Maxime El-Masri , Jérôme Morio , Florian Simatos

We introduce and implement an importance-sampling Monte Carlo algorithm to study systems of globally-coupled oscillators. Our computational method efficiently obtains estimates of the tails of the distribution of various measures of…

Chaotic Dynamics · Physics 2017-07-12 Shamik Gupta , Jorge C. Leitao , Eduardo G. Altmann

The multilevel Monte Carlo (MLMC) method for continuous-time Markov chains, first introduced by Anderson and Higham (SIAM Multiscal Model. Simul. 10(1), 2012), is a highly efficient simulation technique that can be used to estimate various…

Numerical Analysis · Mathematics 2022-11-08 Chiheb Ben Hammouda , Nadhir Ben Rached , Raul Tempone

We explore efficient estimation of statistical quantities, particularly rare event probabilities, for stochastic reaction networks. Consequently, we propose an importance sampling (IS) approach to improve the Monte Carlo (MC) estimator…

Numerical Analysis · Mathematics 2024-03-12 Chiheb Ben Hammouda , Nadhir Ben Rached , Raúl Tempone , Sophia Wiechert

For rare events described in terms of Markov processes, truly unbiased estimation of the rare event probability generally requires the avoidance of numerical approximations of the Markov process. Recent work in the exact and…

Statistics Theory · Mathematics 2021-11-08 James Hodgson , Adam M. Johansen , Murray Pollock

Many probabilistic inference problems such as stochastic filtering or the computation of rare event probabilities require model analysis under initial and terminal constraints. We propose a solution to this bridging problem for the widely…

Systems and Control · Electrical Eng. & Systems 2021-05-28 Michael Backenköhler , Luca Bortolussi , Gerrit Großmann , Verena Wolf

Estimating failure probabilities of engineering systems is an important problem in many engineering fields. In this work we consider such problems where the failure probability is extremely small (e.g $\leq10^{-10}$). In this case, standard…

Numerical Analysis · Mathematics 2017-05-24 Xinjuan Chen , Jinglai Li

Identifying future congestion points in electricity distribution networks is an important challenge distribution system operators face. A proven approach for addressing this challenge is to assess distribution grid adequacy using…

Systems and Control · Electrical Eng. & Systems 2022-07-12 Julian N. Betge , Barbera Droste , Jacco Heres , Simon H. Tindemans
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