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In this paper we develop a very efficient approach to the Monte Carlo estimation of the expected value of partial perfect information (EVPPI) that measures the average benefit of knowing the value of a subset of uncertain parameters…

Numerical Analysis · Mathematics 2019-12-09 Michael B. Giles , Takashi Goda

Monte-Carlo simulations are routinely used for estimating the scaling exponents of complex systems. However, due to finite-size effects, determining the exponent values is often difficult and not reliable. Here we present a novel technique…

Computational Physics · Physics 2008-04-14 Jaan Kalda

Monte Carlo and Quasi-Monte Carlo methods present a convenient approach for approximating the expected value of a random variable. Algorithms exist to adaptively sample the random variable until a user defined absolute error tolerance is…

Numerical Analysis · Mathematics 2023-11-14 Aleksei G. Sorokin , Jagadeeswaran Rathinavel

This article addresses online variational estimation in parametric state-space models. We propose a new procedure for efficiently computing the evidence lower bound and its gradient in a streaming-data setting, where observations arrive…

Methodology · Statistics 2026-02-09 Mathis Chagneux , Mathias Müller , Pierre Gloaguen , Sylvain Le Corff , Jimmy Olsson

We propose to compute physical properties by Monte Carlo calculations using conditional expectation values. The latter are obtained on top of the usual Monte Carlo sampling by partitioning the physical space in several subspaces or…

Chemical Physics · Physics 2022-08-17 Antoine Bienvenu , Jonas Feldt , Julien Toulouse , Roland Assaraf

This paper considers the challenging computational task of estimating nested expectations. Existing algorithms, such as nested Monte Carlo or multilevel Monte Carlo, are known to be consistent but require a large number of samples at both…

Machine Learning · Statistics 2025-06-05 Zonghao Chen , Masha Naslidnyk , François-Xavier Briol

Markov chain Monte Carlo methods are primarily used for sampling from a given probability distribution and estimating multi-dimensional integrals based on the information contained in the generated samples. Whenever it is possible, more…

Statistical Mechanics · Physics 2017-05-22 Manuel Athènes , Pierre Terrier

Monte Carlo simulations have boosted the numerical study of several different physical systems and in particular, the canonical ensemble has been especially useful because of the existence of easy and efficient relaxation algorithms…

Statistical Mechanics · Physics 2019-10-29 G. Palma , A. Riveros

We study Monte Carlo estimation of the expected value of sample information (EVSI) which measures the expected benefit of gaining additional information for decision making under uncertainty. EVSI is defined as a nested expectation in which…

Numerical Analysis · Mathematics 2020-10-05 Tomohiko Hironaka , Michael B. Giles , Takashi Goda , Howard Thom

Monte Carlo methods are used to approximate the means, $\mu$, of random variables $Y$, whose distributions are not known explicitly. The key idea is that the average of a random sample, $Y_1, ..., Y_n$, tends to $\mu$ as $n$ tends to…

Statistics Theory · Mathematics 2015-01-16 Fred J. Hickernell , Lan Jiang , Yuewei Liu , Art Owen

We consider two recent suggestions for how to perform an empirically motivated Monte Carlo study to help select a treatment effect estimator under unconfoundedness. We show theoretically that neither is likely to be informative except under…

Econometrics · Economics 2019-04-18 Arun Advani , Toru Kitagawa , Tymon Słoczyński

The expectation-maximization (EM) algorithm is a powerful computational technique for finding the maximum likelihood estimates for parametric models when the data are not fully observed. The EM is best suited for situations where the…

Computation · Statistics 2018-05-14 Chanseok Park

A vital stage in the mathematical modelling of real-world systems is to calibrate a model's parameters to observed data. Likelihood-free parameter inference methods, such as Approximate Bayesian Computation, build Monte Carlo samples of the…

Computation · Statistics 2021-12-23 Thomas P Prescott , Ruth E Baker

The expected information gain is an important quality criterion of Bayesian experimental designs, which measures how much the information entropy about uncertain quantity of interest $\theta$ is reduced on average by collecting relevant…

Computation · Statistics 2020-06-11 Takashi Goda , Tomohiko Hironaka , Takeru Iwamoto

The pricing of American style and multiple exercise options is a very challenging problem in mathematical finance. One usually employs a Least-Square Monte Carlo approach (Longstaff-Schwartz method) for the evaluation of conditional…

Computational Finance · Quantitative Finance 2011-01-19 Gilles Pagès , Benedikt Wilbertz

We consider an expected-value ranking and selection (R&S) problem where all k solutions' simulation outputs depend on a common parameter whose uncertainty can be modeled by a distribution. We define the most probable best (MPB) to be the…

Methodology · Statistics 2024-04-23 Taeho Kim , Kyoung-kuk Kim , Eunhye Song

Nested simulation encompasses the estimation of functionals linked to conditional expectations through simulation techniques. In this paper, we treat conditional expectation as a function of the multidimensional conditioning variable and…

Statistics Theory · Mathematics 2025-04-16 Ruoxue Liu , Liang Ding , Wenjia Wang , Lu Zou

Monte Carlo simulations are based on the manipulation of random numbers to evaluate probable outcomes, with applicability in a variety of different fields. By assigning probabilities, which can be determined a priori, to various events, it…

Physics Education · Physics 2022-01-03 Parasuraman Swaminathan

The multi-level Monte Carlo method proposed by M. Giles (2008) approximates the expectation of some functionals applied to a stochastic process with optimal order of convergence for the mean-square error. In this paper, a modified…

Probability · Mathematics 2023-01-20 Kristian Debrabant , Andreas Rößler

The efficiency of a Markov chain Monte Carlo algorithm might be measured by the cost of generating one independent sample, or equivalently, the total cost divided by the effective sample size, defined in terms of the integrated…

Computation · Statistics 2017-05-12 Youhan Fang , Yudong Cao , Robert D. Skeel