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In this paper we propose an optimal predictor of a random variable that has either an infinite mean or an infinite variance. The method consists of transforming the random variable such that the transformed variable has a finite mean and…

Statistics Theory · Mathematics 2023-03-28 Victor de la Pena , Henryk Gzyl , Silvia Mayoral , Haolin Zou , Demissie Alemayehu

We derive a new high-order compact finite difference scheme for option pricing in stochastic volatility models. The scheme is fourth-order accurate in space and second-order accurate in time. Under some restrictions, theoretical results…

Computational Finance · Quantitative Finance 2014-04-23 Bertram Düring , Michel Fournié

We give a theory of sublinear expectations and martingales in discrete time. Without assuming the existence of a dominating probability measure, we derive the extensions of classical results on uniform integrability, optional stopping of…

Probability · Mathematics 2011-04-29 Samuel Cohen , Shaolin Ji , Shige Peng

Convex rank tests are partitions of the symmetric group which have desirable geometric properties. The statistical tests defined by such partitions involve counting all permutations in the equivalence classes. Each class consists of the…

Combinatorics · Mathematics 2008-02-17 Jason Morton , Lior Pachter , Anne Shiu , Bernd Sturmfels , Oliver Wienand

This paper concerns the characterisation of second order marginals for random sets in a discrete setting. Under the instance of unit covariances, this problem possesses a combinatorial symmetry, exploited jointly in the companion paper to…

Probability · Mathematics 2013-01-21 Raphael Lachieze-Rey

We present a new, very short proof of a conjecture by I. Ra\c{s}a, which is an inequality involving basic Bernstein polynomials and convex functions. It was affirmed positively very recently by J. Mrowiec, T. Rajba and S. W\k{a}sowicz…

Classical Analysis and ODEs · Mathematics 2017-08-29 Andrzej Komisarski , Teresa Rajba

We introduce an approximation technique for nonlinear hyperbolic systems with sources that is invariant domain preserving. The method is discretization-independent provided elementary symmetry and skew-symmetry properties are satisfied by…

Numerical Analysis · Mathematics 2019-01-30 Jean-Luc Guermond , Bojan Popov , Ignacio Tomas

We discuss when law-invariant convex functionals "collapse to the mean". More precisely, we show that, in a large class of spaces of random variables and under mild semicontinuity assumptions, the expectation functional is, up to an affine…

Mathematical Finance · Quantitative Finance 2021-01-21 Fabio Bellini , Pablo Koch-Medina , Cosimo Munari , Gregor Svindland

Given two independent samples of non-negative random variables with unknown distribution functions $F$ and $G$, respectively, we introduce and discuss two tests for the hypothesis that $F$ is less than or equal to $G$ in increasing convex…

Statistics Theory · Mathematics 2009-02-10 Ludwig Baringhaus , Rudolf Grübel

This paper extends the Kadison duality between compact convex sets and function systems to the setting of partial convexity. A partially convex set is a set that is convex in a designated set of convex variables when the others are held…

Functional Analysis · Mathematics 2026-05-06 Tea Štrekelj

The Contextuality-by-Default approach to determining and measuring the (non)contextuality of a system of random variables requires that every random variable in the system be represented by an equivalent set of dichotomous random variables.…

Quantum Physics · Physics 2022-01-05 Janne V. Kujala , Ehtibar N. Dzhafarov

Why do some languages like Czech permit free word order, while others like English do not? We address this question by pretraining transformer language models on a spectrum of synthetic word-order variants of natural languages. We observe…

Computation and Language · Computer Science 2026-03-23 Jonas Mayer Martins , Jaap Jumelet , Viola Priesemann , Lisa Beinborn

We bound features of counterfactual choices in the nonparametric random utility model of demand, i.e. if observable choices are repeated cross-sections and one allows for unrestricted, unobserved heterogeneity. In this setting, tight bounds…

Econometrics · Economics 2019-05-21 Yuichi Kitamura , Jörg Stoye

It is often claimed that Bayesian methods, in particular Bayes factor methods for hypothesis testing, can deal with optional stopping. We first give an overview, using elementary probability theory, of three different mathematical meanings…

Statistics Theory · Mathematics 2021-03-24 Allard Hendriksen , Rianne de Heide , Peter Grünwald

We investigate $(0,1)$-matrices that are {\em convex}, which means that the ones are consecutive in every row and column. These matrices occur in discrete tomography. The notion of ranked essential sets, known for permutation matrices, is…

Combinatorics · Mathematics 2021-01-13 Richard A. Brualdi , Geir Dahl

Making a decision is often a matter of listing and comparing positive and negative arguments. In such cases, the evaluation scale for decisions should be considered bipolar, that is, negative and positive values should be explicitly…

Artificial Intelligence · Computer Science 2014-01-16 Didier Dubois , Hélène Fargier , Jean-François Bonnefon

A random variable $Y_1$ is said to be smaller than $Y_2$ in the increasing concave stochastic order if $\mathbb{E}[\phi(Y_1)] \leq \mathbb{E}[\phi(Y_2)]$ for all increasing concave functions $\phi$ for which the expected values exist, and…

Statistics Theory · Mathematics 2022-08-04 Alexander Henzi

We investigate the order $\rho$ of the four entire functions in the Nevanlinna matrix of an indeterminate Hamburger moment sequence. We give an upper estimate for $\rho$ which is explicit in terms of the parameters of the canonical system…

Spectral Theory · Mathematics 2015-12-29 Raphael Pruckner , Roman Romanov , Harald Woracek

Conditional mutual information is important in the selection and interpretation of graphical models. Its empirical version is well known as a generalised likelihood ratio test and that it may be represented as a difference in entropy. We…

Methodology · Statistics 2015-01-20 Joe Whittaker , Florian Martin , Yang Xiang

Measures of association in contingency tables, such as odds ratios and their generalizations, are often studied under different sampling schemes that either fix or leave random the margins of the table. While classical results show that…

Statistics Theory · Mathematics 2026-04-28 Rafael Bassi Stern , Ruobin Gong , Joseph B. Kadane , Mark J. Schervish , Teddy Seidenfeld