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Let $\{X_t, t \geq 1\}$ be a sequence of identically distributed and pairwise asymptotically independent random variables with regularly varying tails and $\{ \Theta_t, t\geq1 \}$ be a sequence of positive random variables independent of…

Probability · Mathematics 2017-09-05 Rajat Subhra Hazra , Krishanu Maulik

The probability distribution of percolation thresholds in finite lattices were first believed to follow a normal Gaussian behaviour. With increasing computer power and more efficient simulational techniques, this belief turned to a…

Statistical Mechanics · Physics 2009-11-10 P. M. C. de Oliveira , R. A. Nobrega , D. Stauffer

A random vector $X$ with representation $X=\sum_{j\geq0}A_jZ_j$ is considered. Here, $(Z_j)$ is a sequence of independent and identically distributed random vectors and $(A_j)$ is a sequence of random matrices, `predictable' with respect to…

Probability · Mathematics 2009-09-29 Henrik Hult , Gennady Samorodnitsky

It is well known that the probability distribution of high-frequency financial returns is characterized by a leptokurtic, heavy-tailed shape. This behavior undermines the typical assumption of Gaussian log-returns behind the standard…

Statistical Finance · Quantitative Finance 2023-06-14 Federica De Domenico , Giacomo Livan , Guido Montagna , Oreste Nicrosini

We investigate the frequentist coverage properties of Bayesian credible sets in a general, adaptive, nonparametric framework. It is well known that the construction of adaptive and honest confidence sets is not possible in general. To…

Statistics Theory · Mathematics 2019-02-05 Judith Rousseau , Botond Szabo

Heavy tailed distributions present a tough setting for inference. They are also common in industrial applications, particularly with Internet transaction datasets, and machine learners often analyze such data without considering the biases…

Applications · Statistics 2016-10-14 Matt Taddy , Hedibert Freitas Lopes , Matt Gardner

Recently, several researchers have claimed that conclusions obtained from a Bayes factor (or the posterior odds) may contradict those obtained from Bayesian posterior estimation. In this short paper, we wish to point out that no such…

Statistics Theory · Mathematics 2022-10-24 Harlan Campbell , Paul Gustafson

We propose a mean functional which exists for any probability distributions, and which characterizes the Pareto distribution within the set of distributions with finite left endpoint. This is in sharp contrast to the mean excess plot which…

Methodology · Statistics 2024-04-05 Bernhard Klar

Consider an odd-sized jury, which determines a majority verdict between two equiprobable states of Nature. If each juror independently receives a binary signal identifying the correct state with identical probability $p$, then the…

Probability · Mathematics 2019-11-28 Steve Alpern , Bo Chen , Adam J. Ostaszewski

Given an arbitrary continuous probability density function, it is introduced a conjugated probability density, which is defined through the Shannon information associated with its cumulative distribution function. These new densities are…

Statistics Theory · Mathematics 2018-01-26 H. M. de Oliveira , R. J. Cintra

Despite the successes of probabilistic models based on passing noise through neural networks, recent work has identified that such methods often fail to capture tail behavior accurately, unless the tails of the base distribution are…

Machine Learning · Statistics 2023-06-16 Feynman Liang , Liam Hodgkinson , Michael W. Mahoney

The tail of the distribution of a sum of a random number of independent and identically distributed nonnegative random variables depends on the tails of the number of terms and of the terms themselves. This situation is of interest in the…

Probability · Mathematics 2008-12-10 Christian Y. Robert , Johan Segers

Optimality results for two outstanding Bayesian estimation problems are given in this paper: the estimation of the sampling distribution for the squared total variation function and the estimation of the density for the $L^1$-squared loss…

Statistics Theory · Mathematics 2021-10-28 A. G. Nogales

For first passage percolation on $\mathbb{Z}^2$ with i.i.d. bounded edge weights, we consider the upper tail large deviation event; i.e., the rare situation where the first passage time between two points at distance $n$, is macroscopically…

Probability · Mathematics 2017-12-05 Riddhipratim Basu , Shirshendu Ganguly , Allan Sly

This study aims to show the fundamental difference between logistic regression and Bayesian classifiers in the case of exponential and unexponential families of distributions, yielding the following findings. First, the logistic regression…

Econometrics · Economics 2021-08-10 Roman V. Kirin

The most popular approach in extreme value statistics is the modelling of threshold exceedances using the asymptotically motivated generalised Pareto distribution. This approach involves the selection of a high threshold above which the…

Methodology · Statistics 2014-05-27 Ioannis Papastathopoulos , Jonathan A. Tawn

A common bottleneck in evaluating extremal performance measures is that, due to their very nature, tail data are often very limited. The conventional approach selects the best probability distribution from tail data using parametric…

Computation · Statistics 2018-01-03 Henry Lam , Clementine Mottet

We address the problem of estimating the Weibull tail-coefficient which is the regular variation exponent of the inverse failure rate function. We propose a family of estimators of this coefficient and an associate extreme quantile…

Methodology · Statistics 2024-09-04 Laurent Gardes , Stéphane Girard

The Peaks-Over Threshold is a fundamental method in the estimation of rare events such as small exceedance probabilities, extreme quantiles and return periods. The main problem with the Peaks-Over Threshold method relates to the selection…

Methodology · Statistics 2018-12-11 Richard Minkah , Tertius de Wet

We propose modified frequentist definition for the determination of confidence intervals for the case of Poisson statistics. Namely, we require that 1-\beta' \geq \sum_{n=o}^{n_{obs}+k} P(n|\lambda) \geq \alpha'. We show that this…

Data Analysis, Statistics and Probability · Physics 2012-06-19 Sergey Bitioukov , Nikolai Krasnikov
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