Probabilistic Rounding and Sheppard's Correction

When rounded data are used in place of the true values to compute the variance of a variable or a regression line, the results will be distorted. Under suitable smoothness conditions on the distribution of the variable(s) involved, this bias, however, can be corrected with very high precision by using the well-known Sheppard’s correction. In this paper, Sheppard’s correction is generalized to cover more general forms of rounding procedures than just simple rounding, viz., probabilistic rounding, which includes asymmetric rounding and mixture rounding

Asymmetric Currency Rounding

The euro was introduced on the first of January 1999 as a common currency in fourteen European nations. EC regulations are fundamentally di#erent from usual banking practices for they forbid fees when converting national currencies to euros (fees would otherwise deter users from adopting the euro); this creates a unique fraud context where money can be made by taking advantage of the EC's o#cial rounding rules

Asymmetric Currency Rounding

Abstract. The euro was introduced on the first of January 1999 as a common currency in fourteen European nations. EC regulations are fundamentally different from usual banking practices for they forbid fees when converting national currencies to euros (fees would otherwise deter users from adopting the euro); this creates a unique fraud context where money can be made by taking advantage of the EC’s official rounding rules. This paper proposes a public-key-based protection against such attacks. In our scheme, the parties conducting a transaction can not predict whether the rounding will cause loss or gain while the expected statistical difference between an amount and its euro-equivalent decreases exponentially as the number of transactions increases.