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Still under debate is the question of whether machine learning is capable of going beyond black-box modeling for complex physical systems. We investigate the generalizing and interpretability properties of learning algorithms. To this end,…

Statistical Mechanics · Physics 2019-02-18 C. Casert , T. Vieijra , J. Nys , J. Ryckebusch

With the continue development of Convolutional Neural Networks (CNNs), there is a growing concern regarding representations that they encode internally. Analyzing these internal representations is referred to as model interpretation. While…

Computer Vision and Pattern Recognition · Computer Science 2023-05-18 Hamed Behzadi-Khormouji , José Oramas

We present a new approach for predictive modeling and its uncertainty quantification for mechanical systems, where coarse-grained models such as constitutive relations are derived directly from observation data. We explore the use of a…

Numerical Analysis · Mathematics 2020-06-24 Daniel Z. Huang , Kailai Xu , Charbel Farhat , Eric Darve

The estimation of the Risk Neutral Density (RND) implicit in option prices is challenging, especially in illiquid markets. We introduce the Deep Log-Sum-Exp Neural Network, an architecture that leverages Deep and Transfer learning to…

Mathematical Finance · Quantitative Finance 2026-02-11 Andrea Conti , Giacomo Morelli

The increasing use of deep learning across various domains highlights the importance of understanding the decision-making processes of these black-box models. Recent research focusing on the decision boundaries of deep classifiers, relies…

Machine Learning · Computer Science 2024-08-13 Inês Gomes , Luís F. Teixeira , Jan N. van Rijn , Carlos Soares , André Restivo , Luís Cunha , Moisés Santos

Volatility is a quantity of measurement for the price movements of stocks or options which indicates the uncertainty within financial markets. As an indicator of the level of risk or the degree of variation, volatility is important to…

Machine Learning · Computer Science 2018-11-12 Qiang Zhang , Rui Luo , Yaodong Yang , Yuanyuan Liu

The interpretability of model has become one of the obstacles to its wide application in the high-stake fields. The usual way to obtain interpretability is to build a black-box first and then explain it using the post-hoc methods. However,…

Machine Learning · Computer Science 2023-04-04 Zihao Chen , Xiaomeng Wang , Yuanjiang Huang , Tao Jia

Robust optimization has been established as a leading methodology to approach decision problems under uncertainty. To derive a robust optimization model, a central ingredient is to identify a suitable model for uncertainty, which is called…

Optimization and Control · Mathematics 2021-09-10 Marc Goerigk , Jannis Kurtz

Reinforcement learning policies are typically represented by black-box neural networks, which are non-interpretable and not well-suited for safety-critical domains. To address both of these issues, we propose constrained normalizing flow…

Machine Learning · Computer Science 2024-05-03 Finn Rietz , Erik Schaffernicht , Stefan Heinrich , Johannes A. Stork

Probabilistic deep learning is deep learning that accounts for uncertainty, both model uncertainty and data uncertainty. It is based on the use of probabilistic models and deep neural networks. We distinguish two approaches to probabilistic…

Machine Learning · Computer Science 2021-06-10 Daniel T. Chang

Modern statistical learning techniques have often emphasized prediction performance over interpretability, giving rise to "black box" models that may be difficult to understand, and to generalize to other settings. We conceptually divide a…

Methodology · Statistics 2019-09-16 Wenjia Wang , Yi-Hui Zhou

This paper explores the intricate relationship between interpretability and robustness in deep learning models. Despite their remarkable performance across various tasks, deep learning models often exhibit critical vulnerabilities,…

Machine Learning · Computer Science 2024-12-30 Navid Nayyem , Abdullah Rakin , Longwei Wang

Interpretability analysis methods for artificial intelligence models, such as LIME and SHAP, are widely used, though they primarily serve as post-model for analyzing model outputs. While it is commonly believed that the transparency and…

General Finance · Quantitative Finance 2025-02-28 Yan Zhang , Lin Chen , Yixiang Tian

Deep learning for option pricing has emerged as a novel methodology for fast computations with applications in calibration and computation of Greeks. However, many of these approaches do not enforce any no-arbitrage conditions, and the…

Computational Finance · Quantitative Finance 2020-07-22 Marc Chataigner , Stéphane Crépey , Matthew Dixon

Modern machine learning methods including deep learning have achieved great success in predictive accuracy for supervised learning tasks, but may still fall short in giving useful estimates of their predictive {\em uncertainty}. Quantifying…

Deep Neural Networks are powerful tools to understand complex patterns and making decisions. However, their black-box nature impedes a complete understanding of their inner workings. While online saliency-guided training methods try to…

Computer Vision and Pattern Recognition · Computer Science 2023-06-30 Ali Karkehabadi

Explanation methods shed light on the decision process of black-box classifiers such as deep neural networks. But their usefulness can be compromised because they are susceptible to manipulations. With this work, we aim to enhance the…

Machine Learning · Computer Science 2020-12-21 Ann-Kathrin Dombrowski , Christopher J. Anders , Klaus-Robert Müller , Pan Kessel

Simulations of complex turbulent flow are part and parcel of the engineering design process. Eddy viscosity based turbulence models represent the workhorse for these simulations. The underlying simplifications in eddy viscosity models make…

Fluid Dynamics · Physics 2024-05-15 Minghan Chu , Weicheng Qian

This paper uses deep learning to value derivatives. The approach is broadly applicable, and we use a call option on a basket of stocks as an example. We show that the deep learning model is accurate and very fast, capable of producing…

Computational Finance · Quantitative Finance 2018-10-19 Ryan Ferguson , Andrew Green

Deep learning provides a versatile suite of methods for extracting structured information from complex datasets, enabling deeper understanding of underlying fluid dynamic phenomena. The field of turbulence modeling, in particular, benefits…

Machine Learning · Computer Science 2025-07-31 Anuraj Maurya