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We propose a stable sixth-order compact finite difference scheme with a dynamic fifth-order staggered boundary scheme and 3(2) R-K Bogacki and Shampine adaptive time stepping for pricing American style options. To locate, fix and compute…

Computational Finance · Quantitative Finance 2022-08-01 Chinonso Nwankwo , Weizhong Dai

We study the implicit regularization of mini-batch stochastic gradient descent, when applied to the fundamental problem of least squares regression. We leverage a continuous-time stochastic differential equation having the same moments as…

Machine Learning · Statistics 2020-06-23 Alnur Ali , Edgar Dobriban , Ryan J. Tibshirani

This paper develops a new approach to the estimation of the degree of boundedness or stability of multidimensional nonlinear systems with time-dependent nonperiodic coefficients-an essential task in various engineering and natural science…

Dynamical Systems · Mathematics 2022-06-16 Mark A. Pinsky

A new, computationally- and statistically-efficient algorithm, the Fast $\chi^2$ algorithm, can find a periodic signal with harmonic content in irregularly-sampled data with non-uniform errors. The algorithm calculates the minimized…

Data Analysis, Statistics and Probability · Physics 2009-04-17 David M. Palmer

A Local Resolution of the Problem of Time has recently been given, alongside reformulation as A Local Theory of Background Independence. The classical part of this can be viewed as requiring just Lie's Mathematics, albeit entrenched in…

General Relativity and Quantum Cosmology · Physics 2019-08-09 Edward Anderson

For linear inverse problems $Y=\mathsf{A}\mu+\xi$, it is classical to recover the unknown signal $\mu$ by iterative regularisation methods $(\widehat \mu^{(m)}, m=0,1,\ldots)$ and halt at a data-dependent iteration $\tau$ using some…

Statistics Theory · Mathematics 2017-10-27 Gilles Blanchard , Marc Hoffmann , Markus Reiß

In this paper we propose a new model for volatility fluctuations in financial time series. This model relies on a non-stationary gaussian process that exhibits aging behavior. It turns out that its properties, over any finite time interval,…

Statistical Finance · Quantitative Finance 2015-06-12 J. F. Muzy , R. Baile , E. Bacry

We unify and extend the semigroup and the PDE approaches to stochastic maximal regularity of time-dependent semilinear parabolic problems with noise given by a cylindrical Brownian motion. We treat random coefficients that are only…

Analysis of PDEs · Mathematics 2019-02-12 Pierre Portal , Mark Veraar

Boosting techniques and neural networks are particularly effective machine learning methods for insurance pricing. Often in practice, there are nevertheless endless debates about the choice of the right loss function to be used to train the…

Machine Learning · Statistics 2021-07-12 Michel Denuit , Arthur Charpentier , Julien Trufin

We employ chaotic (phi^2 and phi^4) inflation to illustrate the important role radiative corrections can play during the inflationary phase. Yukawa interactions of phi, in particular, lead to corrections of the form -kappa phi^4 ln(phi/mu),…

High Energy Physics - Phenomenology · Physics 2008-11-26 V. Nefer Senoguz , Qaisar Shafi

Understanding how the optimal value of an optimisation problem changes when its input data is modified is an old question in mathematical optimisation. This paper investigates the computation of the optimal values of a family of (possibly…

Optimization and Control · Mathematics 2026-03-02 Guillaume Derval , Damien Ernst , Quentin Louveaux , Bardhyl Miftari

We interpret steady linear statistical inverse problems as artificial dynamic systems with white noise and introduce a stochastic differential equation (SDE) system where the inverse of the ending time $T$ naturally plays the role of the…

Numerical Analysis · Mathematics 2020-04-10 Shuai Lu , Pingping Niu , Frank Werner

Fitting a data set with a parametrized model can be seen geometrically as finding the global minimum of the chi^2 hypersurface, depending on a set of parameters {P_i}. This is usually done using the Levenberg-Marquardt algorithm. The main…

Data Analysis, Statistics and Probability · Physics 2015-05-30 L. C. Pardo , M. Rovira-Esteva , S. Busch , J. -F. Moulin , J. Ll. Tamarit

We consider the least-square linear regression problem with regularization by the $\ell^1$-norm, a problem usually referred to as the Lasso. In this paper, we first present a detailed asymptotic analysis of model consistency of the Lasso in…

Machine Learning · Computer Science 2009-01-22 Francis Bach

In a thought-provoking paper, Efron (2011) investigated the merit and limitation of an empirical Bayes method to correct selection bias based on Tweedie's formula first reported by \cite{Robbins:1956}. The exceptional virtue of Tweedie's…

Methodology · Statistics 2021-05-27 Lilun Du , Inchi Hu

For continuous phase transitions characterized by power-law divergences, Fisher renormalization prescribes how to obtain the critical exponents for a system under constraint from their ideal counterparts. In statistical mechanics, such…

Statistical Mechanics · Physics 2009-11-13 Ralph Kenna , Hsiao-Ping Hsu , Christian von Ferber

This paper offers a new approach for estimating and forecasting the volatility of financial time series. No assumption is made about the parametric form of the processes. On the contrary, we only suppose that the volatility can be…

Statistics Theory · Mathematics 2007-06-13 Danilo Mercurio , Vladimir Spokoiny

We consider autonomous and non-autonomous evolution equations on a time interval $[0,\tau]$ in a Banach space $X$ with the non-standard time-boundary condition $u(0)=\Phi u(\tau)$, where $\Phi$ is a linear map on $X$. If $\Phi=0$, this is…

Analysis of PDEs · Mathematics 2025-12-19 Wolfgang Arendt , Manfred Sauter

We propose a new risk-constrained formulation of the classical Linear Quadratic (LQ) stochastic control problem for general partially-observed systems. Our framework is motivated by the fact that the risk-neutral LQ controllers, although…

Optimization and Control · Mathematics 2021-12-15 Anastasios Tsiamis , Dionysios S. Kalogerias , Alejandro Ribeiro , George J. Pappas

Time-sensitive machine learning benefits from Sequential Probability Ratio Test (SPRT), which provides an optimal stopping time for early classification of time series. However, in finite horizon scenarios, where input lengths are finite,…

Machine Learning · Computer Science 2025-01-31 Akinori F. Ebihara , Taiki Miyagawa , Kazuyuki Sakurai , Hitoshi Imaoka
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