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We develop an efficient simulation algorithm for computing the tail probabilities of the infinite series $S = \sum_{n \geq 1} a_n X_n$ when random variables $X_n$ are heavy-tailed. As $S$ is the sum of infinitely many random variables, any…

Probability · Mathematics 2016-09-08 Henrik Hult , Sandeep Juneja , Karthyek Murthy

Estimating extreme quantiles is an important task in many applications, including financial risk management and climatology. More important than estimating the quantile itself is to insure zero coverage error, which implies the quantile…

Applications · Statistics 2025-05-08 Douglas E. Johnston

The focus of this work is on estimation of the in-degree distribution in directed networks from sampling network nodes or edges. A number of sampling schemes are considered, including random sampling with and without replacement, and…

Methodology · Statistics 2018-10-03 Nelson Antunes , Shankar Bhamidi , Tianjian Guo , Vladas Pipiras , Bang Wang

We consider regularly varying random vectors. Our goal is to estimate in a non-parametric way some characteristics related to conditioning on an extreme event, like the tail dependence coefficient. We introduce a quasi-spectral…

Methodology · Statistics 2015-02-26 Rafał Kulik , Zhigang Tong

This paper studies the tail probability of weighted sums of the form $\sum_{i=1}^n c_i X_i$, where random variables $X_i$'s are either independent or pairwise quasi-asymptotical independent with heavy tails. Using $h$-insensitive function,…

Probability · Mathematics 2014-04-01 Chenhua Zhang

We present a general non-parametric statistical inference theory for integrals of quantiles without assuming any specific sampling design or dependence structure. Technical considerations are accompanied by examples and discussions,…

Statistics Theory · Mathematics 2026-01-19 Nadezhda Gribkova , Mengqi Wang , Ričardas Zitikis

In risk management, tail risks are of crucial importance. The assessment of risks should be carried out in accordance with the regulatory authority's requirement at high quantiles. In general, the underlying distribution function is…

Risk Management · Quantitative Finance 2020-07-15 Ingo Hoffmann , Christoph J. Börner

Modeling heterogeneity on heavy-tailed distributions under a regression framework is challenging, and classical statistical methodologies usually place conditions on the distribution models to facilitate the learning procedure. However,…

Methodology · Statistics 2024-10-29 Jiaxi Wang , Yanxi Hou , Xingchi Li , Tiandong Wang

Various members of the class of weighted insurance premiums and risk capital allocation rules have been researched from a number of perspectives. Corresponding formulas in the case of parametric families of distributions have been derived,…

Statistics Theory · Mathematics 2017-10-11 Nadezhda Gribkova , Ričardas Zitikis

Estimating the structures at high or low quantiles has become an important subject and attracted increasing attention across numerous fields. However, due to data sparsity at tails, it usually is a challenging task to obtain reliable…

Methodology · Statistics 2021-11-08 Yingying Zhang , Yuefeng Si , Guodong Li , Chil-Ling Tsai

A fundamental problem in analysis of complex systems is getting a reliable estimate of entropy of their probability distributions over the state space. This is difficult because unsampled states can contribute substantially to the entropy,…

Data Analysis, Statistics and Probability · Physics 2023-07-19 Damián G. Hernández , Ahmed Roman , Ilya Nemenman

Both empirical and theoretical investigations of scale-free network models have found that large degrees in a network exert an outsized impact on its structure. However, the tools used to infer the tail behavior of degree distributions in…

Statistics Theory · Mathematics 2024-10-31 Daniel Cirkovic , Tiandong Wang , Daren B. H. Cline

Let $(X_n:n\geq 0)$ be a sequence of i.i.d. r.v.'s with negative mean. Set $S_0=0$ and define $S_n=X_1+... +X_n$. We propose an importance sampling algorithm to estimate the tail of $M=\max \{S_n:n\geq 0\}$ that is strongly efficient for…

Probability · Mathematics 2008-08-21 Jose Blanchet , Peter Glynn

This paper presents an adaptive version of the Hill estimator based on Lespki's model selection method. This simple data-driven index selection method is shown to satisfy an oracle inequality and is checked to achieve the lower bound…

Statistics Theory · Mathematics 2015-12-16 Stéphane Boucheron , Maud Thomas

We show that the full-sample bootstrap is asymptotically valid for constructing confidence intervals for high-quantiles, tail probabilities, and other tail parameters of a univariate distribution. This resolves the doubts that have been…

Statistics Theory · Mathematics 2020-04-28 Svetlana Litvinova , Mervyn J. Silvapulle

The problem of estimating the tail index from truncated data is addressed in Chakrabarty and Samorodnitsky (2009). In that paper, a sample based (and hence random) choice of k is suggested, and it is shown that the choice leads to a…

Statistics Theory · Mathematics 2010-09-23 Arijit Chakrabarty

Recently attention has been drawn to practical problems with the use of unbounded Pareto distributions, for instance when there are natural upper bounds that truncate the probability tail. Aban, Meerschaert and Panorska (2006) derived the…

Statistics Theory · Mathematics 2014-12-24 Jan Beirlant , Isabel Fraga Alves , Ivette Gomes , Mark M. Meerschaert

We discuss in this paper a possibility of constructing a whole class of asymptotic distribution-free tests for testing regularly varying tail distributions. The idea is that we treat the tails of distributions as members of a parametric…

Statistics Theory · Mathematics 2018-06-07 Thuong Nguyen

In this paper, we propose an estimator of the second-order parameter of randomly right-truncated Pareto-type distributions data and establish its consistency and asymptotic normality. Moreover, we derive an asymptotically unbiased estimator…

Statistics Theory · Mathematics 2016-10-21 Nawel Haouas , Abdelhakim Necir , Brahim Brahimi

Modelling multivariate tail dependence is one of the key challenges in extreme-value theory. Multivariate extremes are usually characterized using parametric models, some of which have simpler submodels at the boundary of their parameter…

Methodology · Statistics 2018-12-17 Anna Kiriliouk