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Markov processes are used in a wide range of disciplines, including finance. The transition densities of these processes are often unknown. However, the conditional characteristic functions are more likely to be available, especially for…

Statistics Theory · Mathematics 2013-02-04 Song X. Chen , Liang Peng , Cindy L. Yu

We show that stochastic processes with linear conditional expectations and quadratic conditional variances are Markov, and their transition probabilities are related to a three-parameter family of orthogonal polynomials which generalize the…

Probability · Mathematics 2007-05-23 Wlodzimierz Bryc , Jacek Wesolowski

Event definitions in Complex Event Processing systems are constrained by the expressiveness of each system's language. Some systems allow the definition of instantaneous complex events, while others allow the definition of durative complex…

Logic in Computer Science · Computer Science 2021-08-31 Manolis Pitsikalis , Alexei Lisitsa , Shan Luo

Conditional independence and Markov properties are powerful tools allowing expression of multidimensional probability distributions by means of low-dimensional ones. As multidimensional possibilistic models have been studied for several…

Artificial Intelligence · Computer Science 2013-01-18 Jirina Vejnarova

Humans and animals have the ability to reason and make predictions about different courses of action at many time scales. In reinforcement learning, option models (Sutton, Precup \& Singh, 1999; Precup, 2000) provide the framework for this…

Machine Learning · Computer Science 2021-08-09 Khimya Khetarpal , Zafarali Ahmed , Gheorghe Comanici , Doina Precup

Probability theory can be studied synthetically as the computational effect embodied by a commutative monad. In the recently proposed Markov categories, one works with an abstraction of the Kleisli category and then defines deterministic…

Logic in Computer Science · Computer Science 2022-12-06 Sean Moss , Paolo Perrone

In the field of categorical probability, one uses concepts and techniques from category theory, such as monads and monoidal categories, to study the structures of probability and statistics. In this paper, we connect some ideas from…

Category Theory · Mathematics 2025-02-24 Mika Bohinen , Paolo Perrone

In this paper, we introduce the direct potential outcome system as a framework for analyzing dynamic causal effects of assignments on outcomes in observational time series settings. We provide conditions under which common predictive time…

Econometrics · Economics 2025-01-23 Ashesh Rambachan , Neil Shephard

Quantum theory predicts probabilities as well as relative phases between different alternatives of the system. A unified description of both probabilities and phases comes through a generalisation of the notion of a density matrix for…

Quantum Physics · Physics 2016-09-08 Charis Anastopoulos

Linear representations for a subclass of boolean symmetric functions selected by a parity condition are shown to constitute a generalization of the linear constraints on probabilities introduced by Boole. These linear constraints are…

Artificial Intelligence · Computer Science 2013-04-12 Silvio Ursic

We propose a constructive approach to building temporal point processes that incorporate dependence on their history. The dependence is modeled through the conditional density of the duration, i.e., the interval between successive event…

Methodology · Statistics 2025-10-31 Xiaotian Zheng , Athanasios Kottas , Bruno Sansó

This work contributes to the domains of Boolean algebra and of Bayesian probability, by proposing an algebraic extension of Boolean algebras, which implements an operator for the Bayesian conditional inference and is closed under this…

Logic · Mathematics 2011-12-19 Frederic Dambreville

Quantization for a Borel probability measure refers to the idea of estimating a given probability by a discrete probability with support containing a finite number of elements. If in the quantization some of the elements in the support are…

Probability · Mathematics 2025-03-24 Pigar Biteng , Mathieu Caguiat , Tsianna Dominguez , Mrinal Kanti Roychowdhury

The main goal of the paper is to develop an estimate for the conditional probability function of random stationary ergodic symbolic sequences with elements belonging to a finite alphabet. We elaborate a decomposition procedure for the…

Data Analysis, Statistics and Probability · Physics 2017-08-09 S. S. Melnik , O. V. Usatenko

In classical extreme value theory probabilities of extreme events are estimated assuming all the components of a random vector to be in a domain of attraction of an extreme value distribution. In contrast, the conditional extreme value…

Statistics Theory · Mathematics 2011-08-30 Bikramjit Das , Sidney I. Resnick

Computational analysis of time-course data with an underlying causal structure is needed in a variety of domains, including neural spike trains, stock price movements, and gene expression levels. However, it can be challenging to determine…

Artificial Intelligence · Computer Science 2012-05-14 Samantha Kleinberg , Bud Mishra

This paper introduces the concept of random context representations for the transition probabilities of a finite-alphabet stochastic process. Processes with these representations generalize context tree processes (a.k.a. variable length…

Probability · Mathematics 2016-12-09 Roberto Imbuzeiro Oliveira

We introduce polynomial processes taking values in an arbitrary Banach space $B$ via their infinitesimal generator $L$ and the associated martingale problem. We obtain two representations of the (conditional) moments in terms of solutions…

Probability · Mathematics 2019-11-11 Christa Cuchiero , Sara Svaluto-Ferro

Automata expressiveness is an essential feature in understanding which of the formalisms available should be chosen for modelling a particular problem. Probabilistic and stochastic automata are suitable for modelling systems exhibiting…

Logic in Computer Science · Computer Science 2019-03-19 Valentin Bura , Tim French , Mark Reynolds

We introduce a new definition of speculative bubbles in discrete-time models based on the discounted stock price losing mass at some finite drop-down under an equivalent martingale measure. We provide equivalent probabilistic…

Probability · Mathematics 2022-07-20 Martin Herdegen , Dörte Kreher