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This article is part of a comprehensive research project on liquidity risk in asset management, which can be divided into three dimensions. The first dimension covers liability liquidity risk (or funding liquidity) modeling, the second…

Risk Management · Quantitative Finance 2021-01-07 Thierry Roncalli , Fatma Karray-Meziou , François Pan , Margaux Regnault

Evaluating large language model (LLM)-based multi-agent systems remains a critical challenge, as these systems must exhibit reliable coordination, transparent decision-making, and verifiable performance across evolving tasks. Existing…

Artificial Intelligence · Computer Science 2026-01-21 YenTing Lee , Keerthi Koneru , Zahra Moslemi , Sheethal Kumar , Ramesh Radhakrishnan

Reward models (RMs) are essential for aligning large language models (LLM) with human expectations. However, existing RMs struggle to capture the stochastic and uncertain nature of human preferences and fail to assess the reliability of…

Machine Learning · Computer Science 2025-02-13 Xingzhou Lou , Dong Yan , Wei Shen , Yuzi Yan , Jian Xie , Junge Zhang

Understanding why a large language model (LLM) is uncertain about the response is important for their reliable deployment. Current approaches, which either provide a single uncertainty score or rely on the classical aleatoric-epistemic…

Artificial Intelligence · Computer Science 2026-03-27 Aditya Taparia , Ransalu Senanayake , Kowshik Thopalli , Vivek Narayanaswamy

With the development of artificial intelligence (AI), large language models (LLM) are widely used in many fields. However, the reasoning ability of LLM is still very limited when it comes to mathematical reasoning. Mathematics plays an…

Computation and Language · Computer Science 2024-08-06 Wenbei Xie , Donglin Liu , Haoran Yan , Wenjie Wu , Zongyang Liu

State estimators often provide self-assessed uncertainty metrics, such as covariance matrices, whose credibility is critical for downstream tasks. However, these self-assessments can be misleading due to underlying modeling violations like…

Signal Processing · Electrical Eng. & Systems 2026-04-02 Penggao Yan , Xingqun Zhan , Rui Sun , Li-Ta Hsu

Model inadequacy and measurement uncertainty are two of the most confounding aspects of inference and prediction in quantitative sciences. The process of scientific inference (the inverse problem) and prediction (the forward problem)…

Data Analysis, Statistics and Probability · Physics 2017-11-30 Amir Shahmoradi

Robust optimization provides a principled framework for decision-making under uncertainty, with broad applications in finance, engineering, and operations research. In portfolio optimization, uncertainty in expected returns and covariances…

Statistical Finance · Quantitative Finance 2025-10-15 Daniel Cunha Oliveira , Grover Guzman , Nick Firoozye

Ensuring the reliability and verifiability of large language model (LLM)-enabled systems remains a significant challenge in software engineering. We propose a probabilistic framework for systematically analyzing and improving these systems…

Software Engineering · Computer Science 2025-04-15 Juan Manuel Baldonado , Flavia Bonomo-Braberman , Víctor Adrián Braberman

This paper presents several models addressing optimal portfolio choice, optimal portfolio liquidation, and optimal portfolio transition issues, in which the expected returns of risky assets are unknown. Our approach is based on a coupling…

Portfolio Management · Quantitative Finance 2019-03-21 Alexis Bismuth , Olivier Guéant , Jiang Pu

Handling graph data is one of the most difficult tasks. Traditional techniques, such as those based on geometry and matrix factorization, rely on assumptions about the data relations that become inadequate when handling large and complex…

Machine Learning · Computer Science 2024-04-15 Zhenyu Qian , Yiming Qian , Yuting Song , Fei Gao , Hai Jin , Chen Yu , Xia Xie

We consider a Markov decision process subject to model uncertainty in a Bayesian framework, where we assume that the state process is observed but its law is unknown to the observer. In addition, while the state process and the controls are…

Optimization and Control · Mathematics 2022-06-22 Tomasz R. Bielecki , Igor Cialenco , Andrzej Ruszczyński

Recent advances in mathematical reasoning and the long-term planning capabilities of large language models (LLMs) have precipitated the development of agents, which are being increasingly leveraged in business operations processes. Decision…

Artificial Intelligence · Computer Science 2025-08-18 Xuhua Zhao , Yuxuan Xie , Caihua Chen , Yuxiang Sun

One of the ways to make artificial intelligence more natural is to give it some room for doubt. Two main questions should be resolved in that way. First, how to train a model to estimate uncertainties of its own predictions? And then, what…

Computer Vision and Pattern Recognition · Computer Science 2024-04-17 Alexey Kornaev , Elena Kornaeva , Oleg Ivanov , Ilya Pershin , Danis Alukaev

The recent convergence of pervasive computing and machine learning has given rise to numerous services, impacting almost all areas of economic and social activity. However, the use of AI techniques precludes certain standard software…

Software Engineering · Computer Science 2025-12-11 Vladimir Balditsyn , Philippe Lalanda , German Vega , Stéphanie Chollet

Recent progress in large language models (LLMs) has focused on producing responses that meet human expectations and align with shared values - a process coined alignment. However, aligning LLMs remains challenging due to the inherent…

Existing procedures for model validation have been deemed inadequate for many engineering systems. The reason of this inadequacy is due to the high degree of complexity of the mechanisms that govern these systems. It is proposed in this…

Artificial Intelligence · Computer Science 2007-05-23 A. Guergachi

Machine learning (ML) model trading, known for its role in protecting data privacy, faces a major challenge: information asymmetry. This issue can lead to model deception, a problem that current literature has not fully solved, where the…

Computer Science and Game Theory · Computer Science 2026-01-13 Xiang Li , Jianwei Huang , Kai Yang , Chenyou Fan

In machine learning (ML), efficient asset management, including ML models, datasets, algorithms, and tools, is vital for resource optimization, consistent performance, and a streamlined development lifecycle. This enables quicker…

Software Engineering · Computer Science 2024-06-19 Zhimin Zhao , Yihao Chen , Abdul Ali Bangash , Bram Adams , Ahmed E. Hassan

Large Language Models (LLMs) are known to hallucinate and generate non-factual outputs which can undermine user trust. Traditional methods to directly mitigate hallucinations, such as representation editing and contrastive decoding, often…

Machine Learning · Computer Science 2025-03-11 Prasenjit Dey , Srujana Merugu , Sivaramakrishnan Kaveri
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