A probability weighting function w(p) for an objective probability p in decision under risk plays a pivotal role in Kahneman-Tversky’s prospect theory. Although recent studies in econophysics and neuroeconomics widely utilized probability weighting functions, psychophysical foundations of the probability weighting functions have been unknown. Notably, a behavioral economist Prelec (1998) axioma...

In this paper, we describe an abstract framework and axioms under which exact local computation of marginals is possible. The primitive objects of the framework are variables and valuations. The primitive operators of the framework are combination and marginalization. These operate on valuations. We state three axioms for these operators and we derive the possibility of local computation from t...

In this article I analyze the function f(X) = A + X (mod 2 ) exclusive-or differential probability. 1 The result, regarding differential cryptanalysis, is a better understanding of ciphers that use f(X) as a primitive operation. A simple O(α ) algorithm to compute the probability is given.

abstract spi is based on fitting a gamma distribution to precipitation amounts in selected periods. based on current research, the gamma distribution may not be fitted to annual precipitation of some regions. in order to evaluate this subject, annual precipitation have been used during 1958- 2007 at 11 synoptic stations in iran. in first step, values of spi and frequency of different classes of...

Signal processing techniques will lean on blind methods in the near future, where no redundant, resource allocating information will be transmitted through the channel. To achieve a proper decision, however, it is essential to know at least the probability density function (pdf), which to estimate is classically a time consumpting and/or less accurate hard task, that may make decisions to fail....

A utility function is an important tool for representing a DM’s preference. We adjoin utility functions to multi-objective optimization problems. In current studies, usually one utility function is used for each objective function. Situations may arise for a goal to have multiple utility functions. Here, we consider a constrained multi-objective problem with each objective having multiple utili...

The state price density of a basket, even under uncorrelated Black–Scholes dynamics, does not allow for a closed from density. (This may be rephrased as statement on the sum of lognormals and is especially annoying for such are used most frequently in Financial and Actuarial Mathematics.) In this note we discuss short time and small volatility expansions, respectively. The method works for gene...

My original query some time ago – one computer crash ago was about the amplitude probability density function (pdf) of surface EMG data (from which we have subtracted the mean value). That is, if one plots the amplitude of the rectified EMG in an histogram, what does it look like? The common assumption is that we get a (one-sided) Gaussian pdf for stationary data. This is generally so. However,...

We study the synchronization phenomenon for deterministic finite state automata and the related longstanding Černý conjecture. We formulate this conjecture in the setting of a two-player probabilistic game. Our goal is twofold. On the one hand, the probabilistic interpretation is of interest in its own right and can be applied to real-world situations. On the other hand, our formulation makes u...

A continuous case of new density function called harmonic probability density function (HPDF) is structured using mathematical method. The mean and variance of this probability function is presented using both the definition and moment generating function. A discussion has started on many other connections that may exist between this new model and its applications in geometry, probability, and ...