Stochastic monotonicity of dependent variables given their sum

Given a finite set of independent random variables, assume one can observe their sum, and denote with s its value. Efron in 1965, and Lehmann in 1966, described conditions on the involved variables such that each of them stochastically increases in the value s, i.e., such that the expected value of any non-decreasing function of the variable increases as s increases. In this paper, we investigate conditions such that this stochastic monotonicity property is satisfied when the assumption of independence is removed. Comparisons in the stronger likelihood ratio order are considered as well.

A Behavioral Characterization of the Likelihood Ratio Order

It is well known that stochastic dominance is equivalent to a unanimity property for monotone expected utilities. For lotteries over a finite set of prizes, we establish an analogous relationship between likelihood ratio dominance and monotone betweenness preferences, which are an important generalization of expected utility. (JEL D11, D44)

Auditory Device Voice Activity Detection Based on Statistical Likelihood-Ratio Order Statistics

This paper proposes a technique for improving statistical-model-based voice activity detection (VAD) in noisy environments to be applied in an auditory hearing aid. The proposed method is implemented for a uniform polyphase discrete Fourier transform filter bank satisfying an auditory device time latency of 8 ms. The proposed VAD technique provides an online unified framework to overcome the frequent false rejection of the statistical-model-based likelihood-ratio test (LRT) in noisy environments. The method is based on the observation that the sparseness of speech and background noise cause high false-rejection error rates in statistical LRT-based VAD—the false rejection rate increases as the sparseness increases. We demonstrate that the false-rejection error rate can be reduced by incorporating likelihood-ratio order statistics into a conventional LRT VAD. We confirm experimentally that the proposed method relatively reduces the average detection error rate by 15.8% compared to a conventional VAD with only minimal change in the false acceptance probability for three different noise conditions whose signal-to-noise ratio ranges from 0 to 20 dB.

ORDERING RESULTS ON EXTREMES OF EXPONENTIATED LOCATION-SCALE MODELS

In this paper, we consider exponentiated location-scale model and obtain several ordering results between extreme order statistics in various senses. Under majorization type partial order-based conditions, the comparisons are established according to the usual stochastic order, hazard rate order and reversed hazard rate order. Multiple-outlier models are considered. When the number of components are equal, the results are obtained based on the ageing faster order in terms of the hazard rate and likelihood ratio orders. For unequal number of components, we develop comparisons according to the usual stochastic order, hazard rate order, and likelihood ratio order. Numerical examples are considered to illustrate the results.

DERIVING ROBUST BAYESIAN PREMIUMS UNDER BANDS OF PRIOR DISTRIBUTIONS WITH APPLICATIONS

We study the propagation of uncertainty from a class of priors introduced by Arias-Nicolás et al. [(2016) Bayesian Analysis, 11(4), 1107–1136] to the premiums (both the collective and the Bayesian), for a wide family of premium principles (specifically, those that preserve the likelihood ratio order). The class under study reflects the prior uncertainty using distortion functions and fulfills some desirable requirements: elicitation is easy, the prior uncertainty can be measured by different metrics, and the range of quantities of interest is easily obtained from the extremal members of the class. We illustrate the methodology with several examples based on different claim counts models.

APPLICATIONS OF LIKELIHOOD RATIO ORDER IN BAYESIAN INFERENCES

The present paper studies the likelihood ratio order of posterior distributions of parameter when the same order exists between the corresponding prior of the parameter, or when the observed values of the sufficient statistic for the parameter differ. The established likelihood order allows one to compare the Bayesian estimators associated with many common and general error loss functions analytically. It can also enable one to compare the Bayes factor in hypothesis testing without using numerical computation. Moreover, using the likelihood ratio (LR) order of the posterior distributions can yield the LR order between marginal predictive distributions, and posterior predictive distributions.

LIKELIHOOD RATIO ORDERING OF PARALLEL SYSTEMS WITH HETEROGENEOUS SCALED COMPONENTS

This paper considers stochastic comparison of parallel systems in terms of likelihood ratio order under scale models. We introduce a new order, the so-called q-larger order, and show that under certain conditions, the q-larger order between the scale vectors can imply the likelihood ratio order of parallel systems. Applications are given to the generalized gamma scale family.