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Cumulative prospect theory (CPT) is known to model human decisions well, with substantial empirical evidence supporting this claim. CPT works by distorting probabilities and is more general than the classic expected utility and coherent…

Machine Learning · Computer Science 2016-03-01 Prashanth L. A. , Cheng Jie , Michael Fu , Steve Marcus , Csaba Szepesvári

In this study, we examine a Bayesian approach to analyze extreme daily rainfall amounts and forecast return-levels. Estimating the probability of occurrence and quantiles of future extreme events is important in many applications, including…

Applications · Statistics 2022-08-29 Douglas E. Johnston

In situations where forecasters are scored on the quality of their probabilistic predictions, it is standard to use `proper' scoring rules to perform such scoring. These rules are desirable because they give forecasters no incentive to lie…

Methodology · Statistics 2020-08-25 Spencer Greenberg

This article provides a critical review of the main methods used to produce conservative estimators of probabilities of rare events, or critical failures, for reliability and certification studies in the broadest sense. These probabilities…

Statistics Theory · Mathematics 2024-03-27 Nicolas Bousquet

Proper scoring rules have been a subject of growing interest in recent years, not only as tools for evaluation of probabilistic forecasts but also as methods for estimating probability distributions. In this article, we review the…

Statistics Theory · Mathematics 2026-05-12 Kartik Waghmare , Johanna Ziegel

In recent years, probabilistic forecasting is an emerging topic, which is why there is a growing need of suitable methods for the evaluation of multivariate predictions. We analyze the sensitivity of the most common scoring rules,…

Methodology · Statistics 2019-10-17 Florian Ziel , Kevin Berk

Accurate computation of robust estimates for extremal quantiles of empirical distributions is an essential task for a wide range of applicative fields, including economic policymaking and the financial industry. Such estimates are…

Methodology · Statistics 2024-11-04 Pietro Bogani , Matteo Fontana , Luca Neri , Simone Vantini

Our contribution is to widen the scope of extreme value analysis applied to discrete-valued data. Extreme values of a random variable $X$ are commonly modeled using the generalized Pareto distribution, a method that often gives good results…

Statistics Theory · Mathematics 2017-07-18 Adrien Hitz , Richard Davis , Gennady Samorodnitsky

Climate extremes such as floods, storms, and heatwaves have caused severe economic and human losses across Europe in recent decades. To support the European Union's climate resilience efforts, we propose a statistical framework for…

Applications · Statistics 2025-05-26 Carlotta Pacifici , Simone A. Padoan , Jaroslav Mysiak

Stated choice probabilities are increasingly used in conjunction with the random-coefficient model (RCM) to describe individual preferences. They allow survey respondents to express uncertainty about the future or the incompleteness of a…

General Economics · Economics 2025-03-19 Romuald Meango

A central problem in uncertainty quantification is how to characterize the impact that our incomplete knowledge about models has on the predictions we make from them. This question naturally lends itself to a probabilistic formulation, by…

Statistical Mechanics · Physics 2018-09-03 Giovanni Dematteis , Tobias Grafke , Eric Vanden-Eijnden

Recent advances in AI-based weather prediction have led to the development of artificial intelligence weather prediction (AIWP) models with competitive forecast skill compared to traditional NWP models, but with substantially reduced…

Atmospheric and Oceanic Physics · Physics 2025-10-30 Nicholas Loveday , Tracy Hertneky

Weather extremes are a major societal and economic hazard, claiming thousands of lives and causing billions of dollars in damage every year. Under climate change, their impact and intensity are expected to worsen significantly.…

Machine Learning · Computer Science 2022-10-24 Antoine Blanchard , Nishant Parashar , Boyko Dodov , Christian Lessig , Themistoklis Sapsis

Long-range ensemble forecasts are typically verified as anomalies with respect to a lead-time dependent climatological mean to remove the influence of systematic biases. However, common methods for calculating anomalies result in…

Atmospheric and Oceanic Physics · Physics 2025-06-11 Christopher D. Roberts , Martin Leutbecher

Probabilistic price forecasting has recently gained attention in power trading because decisions based on such predictions can yield significantly higher profits than those made with point forecasts alone. At the same time, methods are…

Statistical Finance · Quantitative Finance 2023-08-30 Weronika Nitka , Rafał Weron

The use of tiered warnings and multicategorical forecasts are ubiquitous in meteorological operations. Here, a flexible family of scoring functions is presented for evaluating the performance of ordered multicategorical forecasts. Each…

Applications · Statistics 2022-05-02 Robert Taggart , Nicholas Loveday , Deryn Griffiths

Randomness in scientific estimation is generally assumed to arise from unmeasured or uncontrolled factors. However, when combining subjective probability estimates, heterogeneity stemming from people's cognitive or information diversity is…

Methodology · Statistics 2015-09-14 Ville A. Satopää , Robin Pemantle , Lyle H. Ungar

Uncertainty in return level estimates for rare events, like the intensity of large rainfall events, makes it difficult to develop strategies to mitigate related hazards, like flooding. Latent spatial extremes models reduce uncertainty by…

Applications · Statistics 2018-12-27 Joshua Hewitt , Miranda J. Fix , Jennifer A. Hoeting , Daniel S. Cooley

In environmental science applications, extreme events frequently exhibit a complex spatio-temporal structure, which is difficult to describe flexibly and estimate in a computationally efficient way using state-of-art parametric…

Methodology · Statistics 2022-12-22 Marco Oesting , Raphaël Huser

When extreme weather events affect large areas, their regional to sub-continental spatial scale is important for their impacts. We propose a novel machine learning (ML) framework that integrates spatial extreme-value theory to model weather…

Applications · Statistics 2025-05-29 Jonathan Koh , Daniel Steinfeld , Olivia Martius
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