An Introduction to Large Deviations

Course content

This will be an introductory course in the theory of large deviations and its applications.  Topics will include:  Cramer's theorem for sample means and for ruin problems in one and higher dimensions; Sanov's theorem for empirical measures; and large deviations results describing the path properties of stochastic processes.  Some emphasis will be given on connecting these results to applications in insurance, finance, statistics, and efficient Monte Carlo simulation methods.

 

Education

MSc Programme in Actuarial Mathematics

MSc Programme in Statistics 

Learning outcome

Knowledge:  By the end of the course, the student should develop an understanding of the basic principles of large deviations and some of its applications.

Skills:   The student should develop analytical and computational skills for analyzing complex problems using large deviation methods.

Competencies:  The student should develop an understanding of, and be able to apply, the standard Cramer theorems (for sample means and ruin problems), including basic multidimensional problems, and applications of the theory to empirical measures and paths of stochastic processes.  The student should also understand natural applications to importance sampling, insurance and finance, and statistics.

4 hours of lecture per week for 7 weeks

Introductory course in measure-theoretic probability theory (e.g., Sand2 or equivalent).

Academic qualifications equivalent to a BSc degree is recommended.

Written
Feedback by final exam (In addition to the grade)
ECTS
7,5 ECTS
Type of assessment
Oral examination, 30 minutes
Type of assessment details
30 minute oral exam without aids and without preparation.
Examination prerequisites

To participate in the exam the two compulsory assignments must be approved and valid

Aid
No aids allowed
Marking scale
7-point grading scale
Censorship form
No external censorship
Several internal examinators.
Re-exam

Same as the ordinary exam.

 If the compulsory assignments were not approved before the ordinary exam they must be (re)submitted and approved. They must be (re)submitted at the latest three weeks before the beginning of the re-exam week.

Criteria for exam assessment

The student must in a satisfactory way demonstrate that they have mastered the learning outcome of the course.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 28
  • Preparation
  • 177
  • Exam
  • 1
  • English
  • 206

Kursusinformation

Language
English
Course number
NMAK18000U
ECTS
7,5 ECTS
Programme level
Full Degree Master
Duration

1 block

Placement
Block 1
Schedulegroup
C
Capacity
No restrictions/no limitation
Studyboard
Study Board of Mathematics and Computer Science
Contracting department
  • Department of Mathematical Sciences
Contracting faculty
  • Faculty of Science
Course Coordinator
  • Jeffrey F. Collamore   (9-65716e6e636f717467426f63766a306d7730666d)
Saved on the 24-02-2025

Er du BA- eller KA-studerende?

Er du bachelor- eller kandidat-studerende, så find dette kursus i kursusbasen for studerende:

Kursusinformation for indskrevne studerende