We study surrogate losses in the context of cost-sensitive classification with exampledependent costs, a problem also known as regression level set estimation. We give sufficient conditions on the surrogate loss for the existence of a surrogate regret bound. Such bounds imply that as the surrogate risk tends to its optimal value, so too does the expected misclassification cost. Our sufficient c...

The energy resources being scarce, their efficient utilization and over use remained a heated topic on International forums. The average energy consumption per person per annum is expected to cross the value of 2000 kilograms of energy/fuel resources figure. The gauged estimations are limited. There is no mechanism for regular checks on idle losses. The estimation/ predication of consumptions h...

Article history: Received 26 September 2009 Received in revised form 22 March 2010 Accepted 6 April 2010 Available online 13 April 2010 In this paper, I analyze the predictability of returns on value and growth portfolios and examine time variation of the expected value premium. As a primary tool, I use the filtering technique, which accounts for time variation in expected cash flows and explic...

Contextual preference reversals occur when a preference for one option over another is reversed by the addition of further options. It has been argued that the occurrence of preference reversals in human behavior shows that people violate the axioms of rational choice and that people are not, therefore, expected value maximizers. In contrast, we demonstrate that if a person is only able to make...

Many decision models can be formulated as continuous minimax problems. The minimax framework injects robustness into the model. It is a tool that one can use to perform worst–case analysis, and it can provide considerable insight into the decision process. It is frequently used alongside other methods such as expected value optimization in order to identify extreme scenarios and strategies that...

The paper concerns the problem how to purchase the reinsurance in order to make the insurer and the reinsurance company’s total risk to be least under the expected value principle. When the insurer and reinsurance company take arbitrary risk measures, sufficient conditions for optimality of reinsurance contract are given within the restricted class of admissible contracts. Further, the explicit...

When G is a rooted graph where each edge may independently succeed with probability p, we consider the expected number of vertices in the operational component of G containing the root. This expected value EV (G;p) is a polynomial in p. We present several distinct equivalent formulations of EV (G;p), unifying prior treatments of this topic. We use results on network resilience (introduced by Co...

1. A random variable is a variable that takes specific values with specific probabilities. It can be thought of as a variable whose value depends on the outcome of an uncertain event. 2. We usually denote random variables by capital letters near the end of the alphabet; e.g., X,Y,Z. 3. Example: Let X be the outcome of the roll of a die. Then X is a random variable. Its possible values are 1, 2,...