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It is not, in general, possible to have access to all variables that determine the behavior of a system. Having identified a number of variables whose values can be accessed, there may still be hidden variables which influence the dynamics…

Neural and Evolutionary Computing · Computer Science 2018-04-30 Rui Ligeiro , R. Vilela Mendes

Epsilon-machines are minimal, unifilar presentations of stationary stochastic processes. They were originally defined in the history machine sense, as hidden Markov models whose states are the equivalence classes of infinite pasts with the…

Probability · Mathematics 2015-03-19 Nicholas F. Travers , James P. Crutchfield

Starting from the Avellaneda-Stoikov framework, we consider a market maker who wants to optimally set bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders she receives depend not only on…

Trading and Market Microstructure · Quantitative Finance 2020-06-29 Diego Zabaljauregui , Luciano Campi

Stochastic optimizers play a crucial role in the successful training of deep neural network models. To achieve optimal model performance, designers must carefully select both model and optimizer hyperparameters. However, this process is…

Machine Learning · Computer Science 2024-09-17 Gustavo Silva , Paul Rodriguez

In this paper, a simulation-based method for the analysis and design of abstracted models for a stochastic hybrid system is proposed. The accuracy of a model is evaluated in terms of its capability to reproduce the system output for all the…

Systems and Control · Computer Science 2014-05-29 M. Prandini , S. Garatti , R. Vignali

Models often need to be constrained to a certain size for them to be considered interpretable. For example, a decision tree of depth 5 is much easier to understand than one of depth 50. Limiting model size, however, often reduces accuracy.…

Machine Learning · Computer Science 2020-07-02 Abhishek Ghose , Balaraman Ravindran

The entropy of a binary symmetric Hidden Markov Process is calculated as an expansion in the noise parameter epsilon. We map the problem onto a one-dimensional Ising model in a large field of random signs and calculate the expansion…

Information Theory · Computer Science 2009-11-11 O. Zuk , I. Kanter , E. Domany

The introduced entropy functional's (EF) information measure of random process integrates multiple information contributions along the process trajectories, evaluating both the states' and between states' bound information connections. This…

Adaptation and Self-Organizing Systems · Physics 2014-06-04 Vladimir S. Lerner

Given a dynamical system with constrained outputs, the maximal admissible set (MAS) is defined as the set of all initial conditions such that the output constraints are satisfied for all time. It has been previously shown that for…

Systems and Control · Electrical Eng. & Systems 2023-03-20 Hamid R. Ossareh , Ilya Kolmanovsky

Stochastic processes find applications in modelling systems in a variety of disciplines. A large number of stochastic models considered are Markovian in nature. It is often observed that higher order Markov processes can model the data…

Probability · Mathematics 2021-04-13 Suryadeepto Nag

Random features is a powerful universal function approximator that inherits the theoretical rigor of kernel methods and can scale up to modern learning tasks. This paper views uncertain system models as unknown or uncertain smooth functions…

Machine Learning · Computer Science 2021-06-25 Diego Agudelo-España , Yassine Nemmour , Bernhard Schölkopf , Jia-Jie Zhu

A prediction makes a claim about a system's future given knowledge of its past. A retrodiction makes a claim about its past given knowledge of its future. The bidirectional machine is an ambidextrous hidden Markov chain that does both…

Statistical Mechanics · Physics 2025-06-24 Alexandra Jurgens , James P. Crutchfield

We consider stability analysis of constrained switching linear systems in which the dynamics is unknown and whose switching signal is constrained by an automaton. We propose a data-driven Lyapunov framework for providing probabilistic…

Systems and Control · Electrical Eng. & Systems 2022-07-15 Adrien Banse , Zheming Wang , Raphaël M. Jungers

In reinforcement learning, robust policies for high-stakes decision-making problems with limited data are usually computed by optimizing the \emph{percentile criterion}. The percentile criterion is approximately solved by constructing an…

Machine Learning · Computer Science 2024-04-09 Elita A. Lobo , Cyrus Cousins , Yair Zick , Marek Petrik

This paper studies the Shannon regime for the random displacement of stationary point processes. Let each point of some initial stationary point process in $\R^n$ give rise to one daughter point, the location of which is obtained by adding…

Information Theory · Computer Science 2015-03-17 Venkat Anantharam , Francois Baccelli

Statistical mechanics is applied to lossy compression using multilayer perceptrons for unbiased Boolean messages. We utilize a tree-like committee machine (committee tree) and tree-like parity machine (parity tree) whose transfer functions…

Statistical Mechanics · Physics 2007-05-23 Kazushi Mimura , Masato Okada

We present new algorithms and fast implementations to find efficient approximations for modelling stochastic processes. For many numerical computations it is essential to develop finite approximations for stochastic processes. While the…

Optimization and Control · Mathematics 2020-12-03 Kipngeno Benard Kirui , Georg Ch. Pflug , Alois Pichler

We consider a stochastic factor financial model where the asset price process and the process for the stochastic factor depend on an observable Markov chain and exhibit an affine structure. We are faced with a finite time investment horizon…

Portfolio Management · Quantitative Finance 2014-03-21 Marcos Escobar , Daniela Neykova , Rudi Zagst

The asymptotic behavior of the stochastic gradient algorithm with a biased gradient estimator is analyzed. Relying on arguments based on the dynamic system theory (chain-recurrence) and the differential geometry (Yomdin theorem and…

Statistics Theory · Mathematics 2017-09-04 Vladislav B. Tadic , Arnaud Doucet

We propose a method to derive the stationary size distributions of a system, and the degree distributions of networks, using maximisation of the Gibbs-Shannon entropy. We apply this to a preferential attachment-type algorithm for systems of…

Physics and Society · Physics 2020-03-17 Cornelia Metzig , Caroline Colijn
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