EVOLUTIONARY ALGORITHMS FOR OVERLAPPING CORRELATION CLUSTERING

Abstract. In Overlapping Correlation Clustering (OCC), a number of objects are assigned to clusters. Two objects in the same cluster have correlated characteristics. As opposed to traditional clustering where objects are assigned to a single cluster, in OCC objects may be assigned to one or more clusters. since an object can have characteristics that are correlated with objects in more than one cluster. In this paper, we present Biased Random-Key Genetic Algorithms for OCC. Computational experiments are presented. 1

The optimal dividend barrier in the Gamma-Omega model

In the traditional actuarial risk model, if the surplus is negative, the company is ruined and has to go out of business. In this paper we distinguish between ruin (negative surplus) and bankruptcy (going out of business), where the probability of bankruptcy is a function of the level of negative surplus. The idea for this notion of bankruptcy comes from the observation that in some industries, companies can continue doing business even though they are technically ruined. Assuming that dividends can only be paid with a certain probability at each point of time, we derive closed-form formulas for the expected discounted dividends until bankruptcy under a barrier strategy. Subsequently, the optimal barrier is determined, and several explicit identities for the optimal value are found. The surplus process of the company is modeled by a Wiener process (Brownian motion)