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Many biological, psychological and economic experiments have been designed where an organism or individual must choose between two options that have the same expected reward but differ in the variance of reward received. In this way,…

Quantitative Methods · Quantitative Biology 2018-09-20 Jared M. Field , Michael B. Bonsall

In practical optimization problems, we typically model uncertainty as a random variable though its true probability distribution is unobservable to the decision maker. Historical data provides some information of this distribution that we…

Optimization and Control · Mathematics 2025-01-28 Arjun Ramachandra , Napat Rujeerapaiboon , Melvyn Sim

We establish a profound connection between coherent risk measures, a prominent object in quantitative finance, and uniform integrability, a fundamental concept in probability theory. Instead of working with absolute values of random…

Risk Management · Quantitative Finance 2025-04-08 Muqiao Huang , Ruodu Wang

Motivated by the Basel 3 regulations, recent studies have considered joint forecasts of Value-at-Risk and Expected Shortfall. A large family of scoring functions can be used to evaluate forecast performance in this context. However, little…

Risk Management · Quantitative Finance 2017-05-15 Johanna F. Ziegel , Fabian Krüger , Alexander Jordan , Fernando Fasciati

The goal is to show that an edge-reinforced random walk on a graph of bounded degree, with reinforcement weight function $W$ taken from a general class of reciprocally summable reinforcement weight functions, traverses a random attracting…

Probability · Mathematics 2009-09-29 Vlada Limic , Pierre Tarrès

Off-policy evaluation provides an essential tool for evaluating the effects of different policies or treatments using only observed data. When applied to high-stakes scenarios such as medical diagnosis or financial decision-making, it is…

Machine Learning · Computer Science 2020-10-30 Ziyang Tang , Yihao Feng , Na Zhang , Jian Peng , Qiang Liu

Low-rank matrix recovery addresses the problem of recovering an unknown low-rank matrix from few linear measurements. Nuclear-norm minimization is a tractible approach with a recent surge of strong theoretical backing. Analagous to the…

Numerical Analysis · Mathematics 2015-05-27 Yonina C. Eldar , Deanna Needell , Yaniv Plan

We propose a new family of fairness definitions for classification problems that combine some of the best properties of both statistical and individual notions of fairness. We posit not only a distribution over individuals, but also a…

Machine Learning · Computer Science 2019-12-18 Michael Kearns , Aaron Roth , Saeed Sharifi-Malvajerdi

Sequential estimation of the success probability $p$ in inverse binomial sampling is considered in this paper. For any estimator $\hat p$, its quality is measured by the risk associated with normalized loss functions of linear-linear or…

Statistics Theory · Mathematics 2018-12-18 Luis Mendo

We study a class of dynamically consistent risk measures that robustify a time-homogeneous Markovian reference model by allowing for distributional uncertainty in its transition laws. We start from one-step convex risk evaluations in which…

Mathematical Finance · Quantitative Finance 2026-05-22 Sven Fuhrmann , Michael Kupper , Max Nendel

We propose a standardized version of fairness measures for continuous scores with a reasonable interpretation based on the Wasserstein distance. Our measures are easily computable and well suited for quantifying and interpreting the…

Machine Learning · Statistics 2024-08-30 Ann-Kristin Becker , Oana Dumitrasc , Klaus Broelemann

In this work, we consider error detection via simulation for reversible circuit architectures. We rigorously prove that reversibility augments the performance of this simple error detection protocol to a considerable degree. A single…

Hardware Architecture · Computer Science 2023-01-11 Lukas Burgholzer , Robert Wille , Richard Kueng

In performative prediction, predictions guide decision-making and hence can influence the distribution of future data. To date, work on performative prediction has focused on finding performatively stable models, which are the fixed points…

Machine Learning · Computer Science 2021-06-17 John Miller , Juan C. Perdomo , Tijana Zrnic

We develop a general theory of risk measures that determines the optimal amount of capital to raise and invest in a portfolio of reference traded securities in order to meet a pre-specified regulatory requirement. The distinguishing feature…

Mathematical Finance · Quantitative Finance 2021-11-17 Maria Arduca , Cosimo Munari

We discuss various forms of the Luxemburg norm in spaces of random vectors with coordinates belonging to the classical Orlicz spaces of exponential type. We prove equivalent relations between some kinds of these forms. We also show when the…

Probability · Mathematics 2019-06-19 Krzysztof Zajkowski

The quality of probabilistic forecasts is crucial for decision-making under uncertainty. While proper scoring rules incentivize truthful reporting of precise forecasts, they fall short when forecasters face epistemic uncertainty about their…

Machine Learning · Computer Science 2025-07-18 Anurag Singh , Siu Lun Chau , Krikamol Muandet

To minimize or upper-bound the value of a function "robustly", we might instead minimize or upper-bound the "epsilon-robust regularization", defined as the map from a point to the maximum value of the function within an epsilon-radius. This…

Optimization and Control · Mathematics 2010-06-10 Adrian S. Lewis , C. H. Jeffrey Pang

We provide a variety of results for (quasi)convex, law-invariant functionals defined on a general Orlicz space, which extend well-known results in the setting of bounded random variables. First, we show that Delbaen's representation of…

Risk Management · Quantitative Finance 2017-09-06 Niushan Gao , Denny H. Leung , Cosimo Munari , Foivos Xanthos

The proportional odds cumulative logit model (POCLM) is a standard regression model for an ordinal response. Ordinality of predictors can be incorporated by monotonicity constraints for the corresponding parameters. It is shown that…

Econometrics · Economics 2025-05-27 Javier Espinosa-Brito , Christian Hennig

This paper focuses on recursive estimation of time varying autoregressive processes in a nonparametric setting. The stability of the model is revisited and uniform results are provided when the time-varying autoregressive parameters belong…

Statistics Theory · Mathematics 2007-06-13 Eric Moulines , Pierre Priouret , François Roueff