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Adversarial Stress Testing of Lifetime Distributions

2020-03-27 · Nozer Singpurwalla

In this paper we put forward the viewpoint that the notion of stress testing financial institutions and engineered systems can also be made viable appropos the stress testing an individual's strength of conviction in a probability distribution. The difference is interpretation and perspective. To make our case we consider a game theoretic setup entailing two players, an adversarial C, and an amicable M.The underlying metrics entail a de Finetti style 2 sided bet with asymmetric payoffs as a way to give meaning to lifetime distributions, an adversarial stress testing function, and a maximization of the expected utility of betting scores via the Kullback Liebler discrimination.

📄 PDF Abstract BibTeX arXiv:2003.12587

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