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In this paper, we investigate a portfolio investment problem under volatility uncertainty and short-sale constraints market via sublinear expectation which is used to model volatility uncertainty. We assume the stocks admit volatility…

Mathematical Finance · Quantitative Finance 2026-05-05 Jing He , Shuzhen Yang

Uncertainty is a key feature of any machine learning model and is particularly important in neural networks, which tend to be overconfident. This overconfidence is worrying under distribution shifts, where the model performance silently…

Machine Learning · Computer Science 2024-03-18 Arthur Thuy , Dries F. Benoit

The output of Large Language Models (LLMs) are a function of the internal model's parameters and the input provided into the context window. The hypothesis presented here is that under a greedy sampling strategy the variance in the LLM's…

Artificial Intelligence · Computer Science 2025-02-20 Srijith Rajamohan , Ahmed Salhin , Josh Frazier , Rohit Kumar , Yu-Cheng Tsai , Todd Cook

The Latent Block Model (LBM) is a model-based method to cluster simultaneously the $d$ columns and $n$ rows of a data matrix. Parameter estimation in LBM is a difficult and multifaceted problem. Although various estimation strategies have…

Statistics Theory · Mathematics 2020-02-26 Vincent Brault , Christine Keribin , Mahendra Mariadassou

Artificial intelligence has transformed the seismic community with deep learning models (DLMs) that are trained to complete specific tasks within workflows. However, there is still lack of robust evaluation frameworks for evaluating and…

Machine Learning · Computer Science 2025-06-03 Samuel Myren , Nidhi Parikh , Rosalyn Rael , Garrison Flynn , Dave Higdon , Emily Casleton

Ensuring large language model (LLM) reliability requires distinguishing objective unsolvability (inherent contradictions) from subjective capability limitations (tasks exceeding model competence). Current LLMs often conflate these…

Computation and Language · Computer Science 2026-02-03 Dengyun Peng , Qiguang Chen , Bofei Liu , Jiannan Guan , Libo Qin , Zheng Yan , Jinhao Liu , Jianshu Zhang , Wanxiang Che

This paper studies the problem of distributed classification with a network of heterogeneous agents. The agents seek to jointly identify the underlying target class that best describes a sequence of observations. The problem is first…

Artificial Intelligence · Computer Science 2020-11-24 James Z. Hare , Cesar A. Uribe , Lance Kaplan , Ali Jadbabaie

Model averaging is a useful and robust method for dealing with model uncertainty in statistical analysis. Often, it is useful to consider data subset selection at the same time, in which model selection criteria are used to compare models…

Methodology · Statistics 2023-10-26 Ethan T. Neil , Jacob W. Sitison

Uncertainty estimation remains a key challenge when adapting pre-trained language models to downstream classification tasks, with overconfidence often observed for difficult inputs. While predictive entropy provides a strong baseline for…

Computation and Language · Computer Science 2026-04-07 Artem Zabolotnyi , Roman Makarov , Mile Mitrovic , Polina Proskura , Oleg Travkin , Roman Alferov , Alexey Zaytsev

Real-world settings where language models (LMs) are deployed -- in domains spanning healthcare, finance, and other forms of knowledge work -- require models to grapple with incomplete information and reason under uncertainty. Yet most LM…

Artificial Intelligence · Computer Science 2026-04-24 Alana Renda , Jillian Ross , Michael Cafarella , Jacob Andreas

We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

Pricing of Securities · Quantitative Finance 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

The rapid rise of large language models (LLMs) is reshaping the landscape of automatic assessment in education. While these systems demonstrate substantial advantages in adaptability to diverse question types and flexibility in output…

Large Language Models (LLMs) and Large Reasoning Models (LRMs) offer transformative potential for high-stakes domains like finance and law, but their tendency to hallucinate, generating factually incorrect or unsupported content, poses a…

Artificial Intelligence · Computer Science 2026-01-16 Ahmad Pesaranghader , Erin Li

Agent Based Modelling (ABM) is a computational framework for simulating the behaviours and interactions of autonomous agents. As Agent Based Models are usually representative of complex systems, obtaining a likelihood function of the model…

Artificial Intelligence · Computer Science 2021-07-09 D. Townsend

This paper focuses on a dynamic multi-asset mean-variance portfolio selection problem under model uncertainty. We develop a continuous time framework for taking into account ambiguity aversion about both expected return rates and…

Portfolio Management · Quantitative Finance 2021-12-02 Huyen Pham , Xiaoli Wei , Chao Zhou

This study addresses a class of linear mixed-integer programming (MILP) problems that involve uncertainty in the objective function parameters. The parameters are assumed to form a random vector, whose probability distribution can only be…

Optimization and Control · Mathematics 2024-03-07 Sergey S. Ketkov

We propose a method to account for model error due to unresolved scales in the context of the ensemble transform Kalman filter (ETKF). The approach extends to this class of algorithms the deterministic model error formulation recently…

Data Analysis, Statistics and Probability · Physics 2023-07-19 Lewis Mitchell , Alberto Carrassi

As Large Language Models (LLMs) are increasingly integrated in diverse applications, obtaining reliable measures of their predictive uncertainty has become critically important. A precise distinction between aleatoric uncertainty, arising…

For applications of machine learning in critical decisions, explainability is a primary concern, and often a regulatory requirement. Local linear methods for generating explanations, such as LIME and SHAP, have been criticized for being…

Machine Learning · Computer Science 2026-03-25 Joseph L. Breeden

Modern Large Language Models (LLMs) often require external tools, such as machine learning classifiers or knowledge retrieval systems, to provide accurate answers in domains where their pre-trained knowledge is insufficient. This…

Machine Learning · Computer Science 2025-05-23 Panagiotis Lymperopoulos , Vasanth Sarathy
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