Rare-event probability estimation with conditional Monte Carlo

Date

2011

Authors

Chan, Chi Chun (Joshua)
Kroese, Dirk

Journal Title

Journal ISSN

Volume Title

Publisher

Kluwer Academic Publishers

Abstract

Estimation of rare-event probabilities in high-dimensional settings via importance sampling is a difficult problem due to the degeneracy of the likelihood ratio. In fact, it is generally recommended that Monte Carlo estimators involving likelihood ratios

Description

Keywords

Keywords: Bottlenecks; Bounded relative error; Conditional Monte Carlo; Credit risks; Cross-entropy; Degeneracy; Heavy-tailed distribution; Normal copula; Rare event; Screening; Subexponential distribution; t-copula

Citation

Source

Annals of Operations Research

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

Restricted until

2037-12-31