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Addressing uncertainty is critical for autonomous systems to robustly adapt to the real world. We formulate the problem of model uncertainty as a continuous Bayes-Adaptive Markov Decision Process (BAMDP), where an agent maintains a…

We analyze systems of agents sharing light-tailed risky claims issued by different financial objects. Assuming exponentially distributed claims, we obtain that both agents' and system's losses follow generalized exponential mixture…

Risk Management · Quantitative Finance 2016-12-22 Claudia Klüppelberg , Miriam Isabel Seifert

We study a novel large dimensional approximate factor model with regime changes in the loadings driven by a latent first order Markov process. By exploiting the equivalent linear representation of the model, we first recover the latent…

Econometrics · Economics 2024-12-04 Matteo Barigozzi , Daniele Massacci

The insurance model when the amount of claims depends on the state of the insured person (healthy, ill, or dead) and claims are connected in a Markov chain is investigated. The signed compound Poisson approximation is applied to the…

Probability · Mathematics 2020-01-13 Gabija Liaudanskaitė , Vydas Čekanavičius

We consider an energy storage problem involving a wind farm with a forecasted power output, a stochastic load, an energy storage device, and a connection to the larger power grid with stochastic prices. Electricity prices and wind power…

Optimization and Control · Mathematics 2020-02-04 Joseph L. Durante , Juliana Nascimento , Warren B. Powell

Disease progression prediction based on patients' evolving health information is challenging when true disease states are unknown due to diagnostic capabilities or high costs. For example, the absence of gold-standard neurological diagnoses…

Methodology · Statistics 2024-12-12 Zexi Cai , Donglin Zeng , Karen S. Marder , Lawrence S. Honig , Yuanjia Wang

Time series of conformational dynamics in proteins are usually evaluated with hidden Markov models (HMMs). This approach works well if the number of states and their connectivity is known. However, for the multi-domain protein Hsp90, a…

This paper intends to apply the Hidden Markov Model into stock market and and make predictions. Moreover, four different methods of improvement, which are GMM-HMM, XGB-HMM, GMM-HMM+LSTM and XGB-HMM+LSTM, will be discussed later with the…

Pricing of Securities · Quantitative Finance 2021-04-21 Mingwen Liu , Junbang Huo , Yulin Wu , Jinge Wu

We describe a new framework for fitting jump models to a sequence of data. The key idea is to alternate between minimizing a loss function to fit multiple model parameters, and minimizing a discrete loss function to determine which set of…

Machine Learning · Computer Science 2018-05-22 A. Bemporad , V. Breschi , D. Piga , S. Boyd

This article focuses on inference in logistic regression for high-dimensional binary outcomes. A popular approach induces dependence across the outcomes by including latent factors in the linear predictor. Bayesian approaches are useful for…

Methodology · Statistics 2025-04-23 Lorenzo Mauri , David B. Dunson

Divide-and-conquer Bayesian methods consist of three steps: dividing the data into smaller computationally manageable subsets, running a sampling algorithm in parallel on all the subsets, and combining parameter draws from all the subsets.…

Methodology · Statistics 2021-06-01 Chunlei Wang , Sanvesh Srivastava

The possibilities of the use of the coefficient of variation over a high threshold in tail modelling are discussed. The paper also considers multiple threshold tests for a generalized Pareto distribution, together with a threshold selection…

Statistics Theory · Mathematics 2015-10-02 J. Castillo , M. Padilla

Tracking the spread of infectious disease during a pandemic has posed a great challenge to the governments and health sectors on a global scale. To facilitate informed public health decision-making, the concerned parties usually rely on…

Methodology · Statistics 2023-06-05 Tejasv Bedi , Yanxun Xu , Qiwei Li

There is a growing interest in learning how the distribution of a response variable changes with a set of predictors. Bayesian nonparametric dependent mixture models provide a flexible approach to address this goal. However, several…

Computation · Statistics 2020-05-06 Tommaso Rigon , Daniele Durante

Uplift is a particular case of conditional treatment effect modeling. Such models deal with cause-and-effect inference for a specific factor, such as a marketing intervention or a medical treatment. In practice, these models are built on…

Machine Learning · Statistics 2021-05-12 Mouloud Belbahri , Olivier Gandouet , Alejandro Murua , Vahid Partovi Nia

In model-based reinforcement learning, most algorithms rely on simulating trajectories from one-step models of the dynamics learned on data. A critical challenge of this approach is the compounding of one-step prediction errors as the…

Machine Learning · Computer Science 2024-02-06 Abdelhakim Benechehab , Albert Thomas , Giuseppe Paolo , Maurizio Filippone , Balázs Kégl

The lifetime behaviour of loans is notoriously difficult to model, which can compromise a bank's financial reserves against future losses, if modelled poorly. Therefore, we present a data-driven comparative study amongst three techniques in…

Risk Management · Quantitative Finance 2026-04-22 Arno Botha , Tanja Verster , Roland Breedt

Modern Advanced Driver Assistance Systems (ADAS) are limited in their ability to consider the drivers intention, resulting in unnatural guidance and low customer acceptance. In this research, we focus on a novel data-driven approach to…

Human-Computer Interaction · Computer Science 2022-07-06 Robert van Wijk , Andrea Michelle Rios Lazcano , Xabier Carrera Akutain , Barys Shyrokau

Discrete choice models with non-monotonic response functions are important in many areas of application, especially political sciences and marketing. This paper describes a novel unfolding model for binary data that allows for heavy-tailed…

Methodology · Statistics 2026-01-28 Rayleigh Lei , Abel Rodriguez

Dynamic modeling of longitudinal networks has been an increasingly important topic in applied research. While longitudinal network data commonly exhibit dramatic changes in its structures, existing methods have largely focused on modeling…

Methodology · Statistics 2018-11-06 Jong Hee Park , Yunkyu Sohn