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We address the task of identifying anomalous observations by analyzing digits under the lens of Benford's law. Motivated by the crucial objective of providing reliable statistical analysis of customs declarations, we answer one major and…

Methodology · Statistics 2025-07-14 Lucio Barabesi , Andrea Cerioli , Andrea Cerasa , Domenico Perrotta

Considering that both the entropy-based market information and the Hurst exponent are useful tools for determining whether the efficient market hypothesis holds for a given asset, we study the link between the two approaches. We thus…

Statistical Finance · Quantitative Finance 2023-06-26 Xavier Brouty , Matthieu Garcin

Very little attention has been paid to the comparison of efficiency between high accuracy statistical parsers. This paper proposes one machine-independent metric that is general enough to allow comparisons across very different parsing…

Computation and Language · Computer Science 2007-05-23 Brian Roark , Eugene Charniak

Tasks that require information about the world imply a trade-off between the time spent on observation and the variance of the response. In particular, fast decisions need to rely on uncertain information. However, standard estimates of…

Neurons and Cognition · Quantitative Biology 2023-07-18 Sahel Azizpour , Viola Priesemann , Johannes Zierenberg , Anna Levina

The data processing inequality is central to information theory and motivates the study of monotonic divergences. However, it is not clear operationally we need to consider all such divergences. We establish a simple method for Pinsker…

Information Theory · Computer Science 2025-04-02 Ian George , Alice Zheng , Akshay Bansal

Statistics comes in two main flavors: frequentist and Bayesian. For historical and technical reasons, frequentist statistics have traditionally dominated empirical data analysis, and certainly remain prevalent in empirical software…

Software Engineering · Computer Science 2024-10-03 Carlo A. Furia , Robert Feldt , Richard Torkar

We show that results from the theory of random matrices are potentially of great interest to understand the statistical structure of the empirical correlation matrices appearing in the study of price fluctuations. The central result of the…

Condensed Matter · Physics 2009-10-31 Laurent Laloux , Pierre Cizeau , Jean-Philippe Bouchaud , Marc Potters

Over the past 30 years, nearly all the gains in the U.S. stock market have been earned overnight, while average intraday returns have been negative or flat. We find that a large part of this effect can be explained through features of…

Trading and Market Microstructure · Quantitative Finance 2025-07-08 Paul Glasserman , Kriste Krstovski , Paul Laliberte , Harry Mamaysky

Two-sample testing is a fundamental problem in statistics. Despite its long history, there has been renewed interest in this problem with the advent of high-dimensional and complex data. Specifically, in the machine learning literature,…

Methodology · Statistics 2019-11-19 Ilmun Kim , Ann B. Lee , Jing Lei

Importance sampling has been reported to produce algorithms with excellent empirical performance in counting problems. However, the theoretical support for its efficiency in these applications has been very limited. In this paper, we…

Probability · Mathematics 2009-08-10 Jose H. Blanchet

Financial markets are notoriously complex environments, presenting vast amounts of noisy, yet potentially informative data. We consider the problem of forecasting financial time series from a wide range of information sources using online…

Statistical Finance · Quantitative Finance 2018-07-12 Sid Ghoshal , Stephen Roberts

In the context of machine learning, disparate impact refers to a form of systematic discrimination whereby the output distribution of a model depends on the value of a sensitive attribute (e.g., race or gender). In this paper, we propose an…

Information Theory · Computer Science 2018-05-14 Hao Wang , Berk Ustun , Flavio P. Calmon

This thesis investigates the quality of randomly collected data by employing a framework built on information-based complexity, a field related to the numerical analysis of abstract problems. The quality or power of gathered information is…

Numerical Analysis · Mathematics 2022-09-16 Mathias Sonnleitner

An asymmetric information model is introduced for the situation in which there is a small agent who is more susceptible to the flow of information in the market than the general market participant, and who tries to implement strategies…

Trading and Market Microstructure · Quantitative Finance 2013-01-31 Dorje C. Brody , Mark H. A. Davis , Robyn L. Friedman , Lane P. Hughston

Invariance-based randomization tests -- such as permutation tests, rotation tests, or sign changes -- are an important and widely used class of statistical methods. They allow drawing inferences under weak assumptions on the data…

Statistics Theory · Mathematics 2022-05-31 Edgar Dobriban

Model efficiency is a critical aspect of developing and deploying machine learning models. Inference time and latency directly affect the user experience, and some applications have hard requirements. In addition to inference costs, model…

Machine Learning · Computer Science 2022-03-17 Mostafa Dehghani , Anurag Arnab , Lucas Beyer , Ashish Vaswani , Yi Tay

Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…

General Finance · Quantitative Finance 2016-09-28 Mario Gutiérrez-Roig , Carlota Segura , Jordi Duch , Josep Perelló

In this paper we present tools for applied researchers that re-purpose off-the-shelf methods from the computer-science field of machine learning to create a "discovery engine" for data from randomized controlled trials (RCTs). The applied…

Machine Learning · Statistics 2019-05-13 Jens Ludwig , Sendhil Mullainathan , Jann Spiess

Randomized algorithms for very large matrix problems have received a great deal of attention in recent years. Much of this work was motivated by problems in large-scale data analysis, and this work was performed by individuals from many…

Data Structures and Algorithms · Computer Science 2011-11-16 Michael W. Mahoney

Even if the output of a Random Number Generator (RNG) is perfectly uniformly distributed, it may be correlated to pre-existing information and therefore be predictable. Statistical tests are thus not sufficient to guarantee that an RNG is…

Quantum Physics · Physics 2013-11-20 Daniela Frauchiger , Renato Renner , Matthias Troyer