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Classically, risk is characterized by a point value probability indicating the likelihood of occurrence of an adverse effect. However, there are domains where the attainability of objective numerical risk characterizations is increasingly…

Artificial Intelligence · Computer Science 2013-02-21 Paul J. Krause , John Fox , Philip Judson

We introduce a simple model for addressing the controversy in the study of financial systems, sometimes taken as brownian-like processes and other as critical systems with fluctuations of arbitrary magnitude. The model considers a…

General Finance · Quantitative Finance 2013-01-01 João P. da Cruz , Pedro G. Lind

A thermodynamic measure of the fragility of liquids has recently (Ito et al ref.1) been defined in terms of the temperature dependence of the excess entropy of liquid over crystal, scaled by the excess entropy at the glass transition…

Disordered Systems and Neural Networks · Physics 2007-05-23 L. -M. Martinez , C. A. Angell

Entropy is useful in statistical problems as a measure of irreversibility, randomness, mixing, dispersion, and number of microstates. However, there remains ambiguity over the precise mathematical formulation of entropy, generalized beyond…

Statistical Mechanics · Physics 2023-08-21 Vladimir Zhdankin

We consider binary liquid mixtures near their critical consolute points and exposed to geometrically flat but chemically structured substrates. The chemical contrast between the various substrate structures amounts to opposite local…

Soft Condensed Matter · Physics 2009-11-11 Monika Sprenger , Frank Schlesener , S. Dietrich

Entropy production is often interpreted as a proxy for microscopic disorder or environmental roughness in stochastic systems. We test this interpretation using controlled simulations of overdamped stochastic dynamics on curved surfaces in…

Statistical Mechanics · Physics 2026-02-23 Patrick Romanescu

Entanglement entropies have revealed, in the last years, to be a powerful tool to extract information about the physics of condensed-matter systems. In the first part of this thesis, we show how to extract essential details about the…

Strongly Correlated Electrons · Physics 2013-09-17 Luca Taddia

Critical phenomena in non-equilibrium systems have been studied by means of a wide variety of theoretical and experimental approaches. Mode-coupling, renormalization group, complex Lie algebras and diagrammatic techniques are some of the…

Statistical Mechanics · Physics 2015-05-13 Enrique Hernandez-Lemus , Leopoldo S. Garcia-Colin

Parastatistic distribution of a total debt owed to a large number of creditors considered in relation to the duration of these debts. The process of debt calculation depends on the fractal dimension of economic system in which this process…

Statistical Finance · Quantitative Finance 2016-02-04 I. A. Molotkov , N. A. Ryabova

This paper presents a novel numerical method for the hybrid reliability analysis by using the uncertainty theory. Aleatory uncertainty and epistemic uncertainty are considered simultaneously in this method. Epistemic uncertainty is…

Computational Engineering, Finance, and Science · Computer Science 2020-09-18 Lei Zhang

A neutrosophic set is a more general platform, which can be used to present uncertainty, imprecise, incomplete and inconsistent. In this paper a score function and an accuracy function for single valued neutrosophic sets is firstly proposed…

Artificial Intelligence · Computer Science 2014-12-18 Rıdvan Şahin

Probability metrics constitute an important tool in probability theory and statistics \cite{DKS91}, \cite{R91}, \cite{Z83} as they are specific metrics on spaces of random variables which, by satisfying an extra condition, concord well with…

Probability · Mathematics 2015-11-19 Ben Berckmoes , Bob Lowen

The demand for resilient logistics networks has increased because of recent disasters. When we consider optimization problems, entropy regularization is a powerful tool for the diversification of a solution. In this study, we proposed a…

Systems and Control · Electrical Eng. & Systems 2022-12-06 Koshi Oishi , Yota Hashizume , Tomohiko Jimbo , Hirotaka Kaji , Kenji Kashima

Although some information-theoretic measures of uncertainty or granularity have been proposed in rough set theory, these measures are only dependent on the underlying partition and the cardinality of the universe, independent of the lower…

Artificial Intelligence · Computer Science 2011-02-02 Ping Zhu , Qiaoyan Wen

An updated review [1] of nonextensive statistical mechanics and thermodynamics is colloquially presented. Quite naturally the possibility emerges for using the value of q-1 (entropic nonextensivity) as a simple and efficient manner to…

Statistical Mechanics · Physics 2007-05-23 Constantino Tsallis

Entropy plays a key role in statistical physics of complex systems, which in general exhibit diverse aspects of emergence on different scales. However, it still remains not fully resolved how entropy varies with the coarse-graining level…

Statistical Mechanics · Physics 2017-08-07 Segun Goh , Jungzae Choi , MooYoung Choi , Byung-Gook Yoon

An important component in deploying machine learning (ML) in safety-critic applications is having a reliable measure of confidence in the ML model's predictions. For a classifier $f$ producing a probability vector $f(x)$ over the candidate…

Machine Learning · Computer Science 2022-10-26 Gal Yona , Amir Feder , Itay Laish

Analytical, free of time consuming Monte Carlo simulations, framework for credit portfolio systematic risk metrics calculations is presented. Techniques are described that allow calculation of portfolio-level systematic risk measures…

Risk Management · Quantitative Finance 2011-07-14 Mikhail Voropaev

Asymptotically entropy of chaotic systems increases linearly and the sensitivity to initial conditions is exponential with time: these two behaviors are related. Such relationship is the analogous of and under specific conditions has been…

Statistical Mechanics · Physics 2011-01-04 Roberto Tonelli , Giuseppe Mezzorani , Franco Meloni , Marcello Lissia , Massimo Coraddu

This paper is a review of a particular approach to the method of maximum entropy as a general framework for inference. The discussion emphasizes the pragmatic elements in the derivation. An epistemic notion of information is defined in…

Data Analysis, Statistics and Probability · Physics 2021-08-04 Ariel Caticha