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Stochastic volatility models are the backbone of financial engineering. We study both continuous time diffusions as well as discrete time models. We propose two novel approaches to estimating stochastic volatility diffusions, one using…

Quantum Physics · Physics 2025-07-30 Eric Ghysels , Jack Morgan , Hamed Mohammadbagherpoor

In unsupervised classification, Hidden Markov Models (HMM) are used to account for a neighborhood structure between observations. The emission distributions are often supposed to belong to some parametric family. In this paper, a…

Machine Learning · Statistics 2012-06-25 Stevenn Volant , Caroline Bérard , Marie-Laure Martin-Magniette , Stéphane Robin

A workload analysis technique is presented that processes data from operation type traces and creates a Hidden Markov Model (HMM) to represent the workload that generated those traces. The HMM can be used to create representative traces for…

Performance · Computer Science 2012-09-18 P. G. Harrison , S. K. Harrison , N. M. Patel , S. Zertal

While neural, encoder-decoder models have had significant empirical success in text generation, there remain several unaddressed problems with this style of generation. Encoder-decoder models are largely (a) uninterpretable, and (b)…

Computation and Language · Computer Science 2019-06-18 Sam Wiseman , Stuart M. Shieber , Alexander M. Rush

A new language model for speech recognition inspired by linguistic analysis is presented. The model develops hidden hierarchical structure incrementally and uses it to extract meaningful information from the word history - thus enabling the…

Computation and Language · Computer Science 2007-05-23 Ciprian Chelba , Frederick Jelinek

The Baum-Welsh algorithm together with its derivatives and variations has been the main technique for learning Hidden Markov Models (HMM) from observational data. We present an HMM learning algorithm based on the non-negative matrix…

Machine Learning · Computer Science 2011-01-11 George Cybenko , Valentino Crespi

This paper intends to apply the Hidden Markov Model into stock market and and make predictions. Moreover, four different methods of improvement, which are GMM-HMM, XGB-HMM, GMM-HMM+LSTM and XGB-HMM+LSTM, will be discussed later with the…

Pricing of Securities · Quantitative Finance 2021-04-21 Mingwen Liu , Junbang Huo , Yulin Wu , Jinge Wu

Consider a stationary discrete random process with alphabet size d, which is assumed to be the output process of an unknown stationary Hidden Markov Model (HMM). Given the joint probabilities of finite length strings of the process, we are…

Machine Learning · Computer Science 2015-12-15 Qingqing Huang , Rong Ge , Sham Kakade , Munther Dahleh

This paper formed part of a preliminary research report for a risk consultancy and academic research. Stochastic Programming models provide a powerful paradigm for decision making under uncertainty. In these models the uncertainties are…

Computational Finance · Quantitative Finance 2009-04-08 Sovan Mitra

Script knowledge consists of detailed information on everyday activities. Such information is often taken for granted in text and needs to be inferred by readers. Therefore, script knowledge is a central component to language comprehension.…

Computation and Language · Computer Science 2019-06-11 Lilian D. A. Wanzare , Michael Roth , Manfred Pinkal

Working on the daily closing prices and logreturns, in this paper we deal with the use of Hidden Markov Models (HMMs) to forecast the price of the EUR/USD Futures. The aim of our work is to understand how the HMMs describe different…

Machine Learning · Statistics 2016-05-09 Sara Rebagliati , Emanuela Sasso , Samuele Soraggi

Player modeling is an important concept that has gained much attention in game research due to its utility in developing adaptive techniques to target better designs for engagement and retention. Previous work has explored modeling…

Artificial Intelligence · Computer Science 2018-04-03 Sara Bunian , Alessandro Canossa , Randy Colvin , Magy Seif El-Nasr

The Baum-Welch (B-W) algorithm is the most widely accepted method for inferring hidden Markov models (HMM). However, it is prone to getting stuck in local optima, and can be too slow for many real-time applications. Spectral learning of…

Machine Learning · Statistics 2024-08-27 Xiaoyuan Ma , Jordan Rodu

The field of world modeling is fragmented, with researchers developing bespoke architectures that rarely build upon each other. We propose a framework that specifies the natural building blocks for structured world models based on the…

Machine Learning · Computer Science 2025-11-05 Lancelot Da Costa , Sanjeev Namjoshi , Mohammed Abbas Ansari , Bernhard Schölkopf

We will outline novel approaches to derive model invariants for hidden Markov and related models. These approaches are based on a theoretical framework that arises from viewing random processes as elements of the vector space of string…

Statistics Theory · Mathematics 2009-02-08 Alexander Schoenhuth

Hidden Markov Models (HMMs) are a commonly used tool for inference of transcription factor (TF) binding sites from DNA sequence data. We exploit the mathematical equivalence between HMMs for TF binding and the "inverse" statistical…

Statistical Mechanics · Physics 2015-05-19 Pankaj Mehta , David Schwab , Anirvan M. Sengupta

Most representation learning algorithms for language and image processing are local, in that they identify features for a data point based on surrounding points. Yet in language processing, the correct meaning of a word often depends on its…

Machine Learning · Computer Science 2014-02-19 Anjan Nepal , Alexander Yates

Hidden Markov Chains (HMCs) are commonly used mathematical models of probabilistic systems. They are employed in various fields such as speech recognition, signal processing, and biological sequence analysis. We consider the problem of…

Data Structures and Algorithms · Computer Science 2016-05-10 Stefan Kiefer , A. Prasad Sistla

Industrial processes generate a massive amount of monitoring data that can be exploited to uncover hidden time losses in the system. This can be used to enhance the accuracy of maintenance policies and increase the effectiveness of the…

Applications · Statistics 2025-08-27 Fernando Miguelez , Josu Doncel , Maria Dolores Ugarte

We present an efficient exact algorithm for estimating state sequences from outputs (or observations) in imprecise hidden Markov models (iHMM), where both the uncertainty linking one state to the next, and that linking a state to its…

Artificial Intelligence · Computer Science 2012-10-08 Jasper De Bock , Gert de Cooman