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This paper considers importance sampling for estimation of rare-event probabilities in a specific collection of Markovian jump processes used for e.g. modelling of credit risk. Previous attempts at designing importance sampling algorithms…

Probability · Mathematics 2021-12-02 Boualem Djehiche , Henrik Hult , Pierre Nyquist

We consider the problem of estimating rare event probabilities, focusing on systems whose evolution is governed by differential equations with uncertain input parameters. If the system dynamics is expensive to compute, standard sampling…

Computation · Statistics 2019-11-05 Siddhant Wahal , George Biros

We propose a new estimator for the high-dimensional linear regression model with observation error in the design where the number of coefficients is potentially larger than the sample size. The main novelty of our procedure is that the…

Methodology · Statistics 2019-09-09 Alexandre Belloni , Abhishek Kaul , Mathieu Rosenbaum

Importance sampling is a widely used technique to estimate properties of a distribution. This paper investigates trading-off some bias for variance by adaptively winsorizing the importance sampling estimator. The novel winsorizing…

Computation · Statistics 2021-02-10 Paulo Orenstein

In this paper, we propose a novel robust stochastic optimization approach with a distinctive consideration for rare events, in which divergence measures are used to bound the event-wise ambiguity sets. This is done by using the Poisson…

Optimization and Control · Mathematics 2021-09-14 Aakil M. Caunhye , Douglas Alem

Rare events can potentially occur in many applications. When manifested as opportunities to be exploited, risks to be ameliorated, or certain features to be extracted, such events become of paramount significance. Due to their sporadic…

Information Theory · Computer Science 2012-10-10 Ali Tajer , H. Vincent Poor

We analyse the efficiency of several simulation methods which we have recently proposed for calculating rate constants for rare events in stochastic dynamical systems, in or out of equilibrium. We derive analytical expressions for the…

Other Condensed Matter · Physics 2009-11-11 Rosalind J. Allen , Daan Frenkel , Pieter Rein ten Wolde

We consider the estimation of rare-event probabilities using sample proportions output by naive Monte Carlo or collected data. Unlike using variance reduction techniques, this naive estimator does not have a priori relative efficiency…

Methodology · Statistics 2025-02-19 Yuanlu Bai , Henry Lam

The paper presents a new efficient and robust method for rare event probability estimation for computational models of an engineering product or a process returning categorical information only, for example, either success or failure. For…

Computational Engineering, Finance, and Science · Computer Science 2022-10-11 Miroslav Vořechovský

Improving Importance Sampling estimators for rare event probabilities requires sharp approximations of conditional densities. This is achieved for events E_{n}:=(f(X_{1})+...+f(X_{n}))\inA_{n} where the summands are i.i.d. and E_{n} is a…

Probability · Mathematics 2012-02-08 Michel Broniatowski , Virgile Caron

Good robust estimators can be tuned to combine a high breakdown point and a specified asymptotic efficiency at a central model. This happens in regression with MM- and tau-estimators among others. However, the finite-sample efficiency of…

Statistics Theory · Mathematics 2013-11-21 Ricardo Maronna , Víctor Yohai

The inferential model (IM) framework offers an alternative to the classical probabilistic (e.g., Bayesian and fiducial) uncertainty quantification in statistical inference. A key distinction is that classical uncertainty quantification…

Statistics Theory · Mathematics 2025-07-15 Ryan Martin , Jonathan P. Williams

The probability of rare and extreme events is an important quantity for design purposes. However, computing the probability of rare events can be expensive because only a few events, if any, can be observed. To this end, it is necessary to…

Computational Physics · Physics 2020-01-08 Malik Hassanaly , Venkat Raman

Value-at-Risk (VaR) estimation at high confidence levels is inherently a rare-event problem and is particularly sensitive to tail behavior and model misspecification. This paper studies the performance of two simulation-based VaR estimation…

Risk Management · Quantitative Finance 2026-01-16 Aditri

We provide a novel characterization of semiparametric efficiency in a generic supervised learning setting where the outcome mean function -- defined as the conditional expectation of the outcome of interest given the other observed…

Methodology · Statistics 2025-04-22 Harrison H. Li

Off-policy policy estimators that use importance sampling (IS) can suffer from high variance in long-horizon domains, and there has been particular excitement over new IS methods that leverage the structure of Markov decision processes. We…

Machine Learning · Computer Science 2020-06-09 Yao Liu , Pierre-Luc Bacon , Emma Brunskill

In this work we propose an adaptive multilevel version of subset simulation to estimate the probability of rare events for complex physical systems. Given a sequence of nested failure domains of increasing size, the rare event probability…

Numerical Analysis · Mathematics 2023-12-13 Daniel Elfverson , Robert Scheichl , Simon Weissmann , F. Alejandro DiazDelaO

A rare event is defined by a low probability of occurrence. Accurate estimation of such small probabilities is of utmost importance across diverse domains. Conventional Monte Carlo methods are inefficient, demanding an exorbitant number of…

Machine Learning · Computer Science 2023-10-31 Zhenggqi Gao , Dinghuai Zhang , Luca Daniel , Duane S. Boning

The principle of maximum entropy is a broadly applicable technique for computing a distribution with the least amount of information possible while constrained to match empirically estimated feature expectations. However, in many real-world…

Machine Learning · Computer Science 2022-08-16 Kenneth Bogert , Yikang Gui , Prashant Doshi

Importance sampling (IS) is a powerful Monte Carlo methodology for the approximation of intractable integrals, very often involving a target probability density function. The performance of IS heavily depends on the appropriate selection of…

Computation · Statistics 2023-06-22 Víctor Elvira , Emilie Chouzenoux , Ömer Deniz Akyildiz , Luca Martino
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