The effect of random scale changes on limits of infinitesimal systems

Suppose S={{Xnj,   j=1,2,…,kn}} is an infinitesimal system of random variables whose centered sums converge in law to a (necessarily infinitely divisible) distribution with Levy representation determined by the triple (γ,σ2,M). If {Yj,   j=1,2,…} are independent indentically distributed random variables independent of S, then the system S′={{YjXnj,j=1,2,…,kn}} is obtained by randomizing the scale parameters in S according to the distribution of Y1. We give sufficient conditions on the distribution of Y in terms of an index of convergence of S, to insure that centered sums from S′ be convergent. If such sums converge to a distribution determined by (γ′,(σ′)2,Λ), then the exact relationship between (γ,σ2,M) and (γ′,(σ′)2,Λ) is established. Also investigated is when limit distributions from S and S′ are of the same type, and conditions insuring products of random variables belong to the domain of attraction of a stable law

Different Market Methods for Transferring Financial Risks in Construction

A goal of risk management in construction is to minimize risk exposure and the total cost of risk for a project. To this end, there are a variety of market mechanisms available for transferring risk and/or the financial consequences of a risk realization (e.g., transfer the financial consequences of a risk to an insurance company or use contractual non-insurance risk transfers such as hold harmless agreements to allocate financial responsibility to another party). Unique characteristics of construction risks are examined along with a discussion of which of these risks are insurable and which are not. The advisable risk handling mechanism to use (insurance, non-insurance transfer, retention or self-insurance, or some other technique) is provided Both the construction firm and its client must anticipate potential undesirable event occurrence with initial project planning, and build both downside risk protection and resilience into its risk management strategy. Future emerging technological advances and their impact on construction risks are discussed

Optimal enterprise risk management and decision making with shared and dependent risks

Includes bibliographical references (pages 27-29).Published as: Journal of Risk and Insurance, vol. 84, no. 4, December 2017, pp. 1127–1169. https://doi.org/10.1111/jori.12140.Dynamic enterprise risk management (ERM) entails holistic decision-making for critical corporate functions such as capital budgeting and risk management. The interplay across business divisions, however, is complicated due to their natural interactions through the shared and dependent risk exposures within an intricate corporate structure. This paper develops an integrated optimization framework via a copula-based decision tree interface to facilitate ERM decision making to meet the specified enterprise goal in a multi-period setting. We illustrate our model and provide managerial insights with a case study for a financial services company engaged in both banking and insurance businesses

Improving Arts Management/Marketing Efficiency: Optimizing Utilization of Scarce Resources to Produce Artistic Outputs

Purpose This longitudinal research examines US symphony orchestra sector organizations to determine individual efficiencies in allocating resources (donations, governmental/private funding, etc.) for desirable outputs (concerts, educational programs, community outreach). It provides researchers and managers with a tool for identifying, assessing and mitigating organizational inefficiencies. Design/methodology/approach This study assesses relative efficiencies in performing arts organizations using Data Envelopment Analysis (DEA), a widely-used nonparametric data-intensive benchmarking technique that determines an optimal “production frontier” of best-practice organizations among their peers and assesses their abilities to turn multivariate inputs into multivariate desired outputs. Findings This analysis highlights efficiency differences in a wide range of orchestras in converting available resources into performance-related outputs. It provides individual arts organizations with useful results for developing practical benchmarks to achieve organizational efficiency improvement. Research limitations/implications: This study provides constructive benchmarking guidance for improving efficiencies of relatively-inefficient organizations. Future analysis can expand the scope to utilize a two-stage DEA model to provide more specific guidance to arts organizations. Practical implications: This pragmatic analysis enables arts/culture institutions to assess their organizational efficiencies and identify opportunities to optimize resources in producing social outputs for their target markets. Social implications: Efficiency improvements enable performing arts organizations to provide additional artistic/social services, with fewer resources, to larger audiences. Originality/value This research demonstrates the abilities of DEA analysis to assess both a sector and its individual organizations to determine efficiencies, identify sources of inefficiencies and assess longitudinal efficiency trends

aPRIDIT Unsupervised Classification with Asymmetric Valuation of Variable Discriminatory Worth

Sometimes one needs to classify individuals into groups, but there is no available grouping information due to social desirability bias in reporting behavior like unethical or dishonest intentions or unlawful actions. Assessing hard-to-detect behaviors is useful; however it is methodologically difficult because people are unlikely to self-disclose bad actions. This paper presents an unsupervised classification methodology utilizing ordinal categorical predictor variables. It allows for classification, individual respondent ranking, and grouping without access to a dependent group indicator variable. The methodology also measures predictor variable worth (for determining target behavior group membership) at a predictor variable category-by-category level, so different variable response categories can contain different amounts of information about classification. It is asymmetric in that a “0” on a binary predictor does not have a similar impact toward signaling “membership in the target group” as a “1” has for signaling “membership in the non-target group.” The methodology is illustrated by identifying Spanish consumers filing fraudulent insurance claims. A second illustration classifies Portuguese high school student’s propensity to alcohol abuse. Results show the methodology is useful when it is difficult to get dependent variable information, and is useful for deciding which predictor variables and categorical response options are most important

The Effect of Nordic Hamstring Strength Training on Muscle Architecture, Stiffness, and Strength

Purpose: Hamstring strain injury is a frequent and serious injury in competitive and recreational sports. While Nordic hamstring (NH) eccentric strength training is an effective hamstring injury prevention method, the protective mechanism of this exercise is not understood. Strength training increases muscle strength, but also alters muscle architecture and stiffness; all three factors may be associated with reducing muscle injuries. The purpose of this study was to examine the effects of NH eccentric strength training on hamstring muscle architecture, stiffness, and strength. Methods: Twenty healthy participants were randomly assigned to an eccentric training group or control group. Control participants performed static stretching, while experimental participants performed static stretching and NH training for 6 weeks. Pre- and post-intervention measurements included: hamstring muscle architecture and stiffness using ultrasound imaging and elastography, and maximal hamstring strength measured on a dynamometer. Results: The experimental group, but not the control group, increased volume (131.5 vs. 145.2 cm3, p\u3c0.001) and physiological cross-sectional area (16.1 vs. 18.1 cm2, p=0.032). There were no significant changes to muscle fascicle length, stiffness, or eccentric hamstring strength. Conclusions: The NH intervention was an effective training method for muscle hypertrophy, but, contrary to common literature findings for other modes of eccentric training, did not increase fascicle length. The data suggest the mechanism behind NH eccentric strength training mitigating hamstring injury risk could be increasing volume rather than increasing muscle length. Future research is therefore warranted to determine if muscle hypertrophy induced by NH training lowers future hamstring strain injury risk

Obtaining a Life Table for Spinal Cord Injury Patients Using Information Theory

We present a mortality table adjustment method based on a constrained information theoretic methodology. The objective is to adjust a standard mortality table to reflect a particular known characteristic of the population while remaining as close as possible to a given standard table. To illustrate these techniques, the medical results concerning survival of spinal cord injury patients are incorporated into a standard table to obtain a mortality table pertinent for paraplegic and quadriplegic individuals. The desired adjusted mortality table can be used by actuaries for special purposes such as wrongful injury damage award compensation calculations and determining life insurance premium for medically impaired lives