Detecting anomalies has become an increasingly critical function in the financial service industry. Anomaly detection is frequently used in key compliance and risk functions such as financial crime detection fraud and cybersecurity. The dynamic nature of the underlying data patterns especially in adversarial environments like fraud detection poses serious challenges to the machine learning models. Keeping up with the rapid changes by retraining the models with the latest data patterns introduces pressures in balancing the historical and current patterns while managing the training data size. Furthermore the model retraining times raise problems in time-sensitive and high-volume deployment systems where the retraining period directly impacts the models ability to respond to ongoing attacks in a timely manner. In this study we propose a temporal knowledge distillation-based label augmentation approach (TKD) which utilizes the learning from older models to rapidly boost the latest model and effectively reduces the model retraining times to achieve improved agility. Experimental results show that the proposed approach provides advantages in retraining times while improving the model performance.
We introduce a multivariate local-linear estimator for multivariate regression discontinuity designs in which treatment is assigned by crossing a boundary in the space of running variables. The dominant approach uses the Euclidean distance from a boundary point as the scalar running variable; hence, multivariate designs are handled as uni-variate designs. However, the distance running variable is incompatible with the assumption for asymptotic validity. We handle multivariate designs as multivariate. In this study, we develop a novel asymptotic normality for multivariate local-polynomial estimators. Our estimator is asymptotically valid and can capture heterogeneous treatment effects over the boundary. We demonstrate the effectiveness of our estimator through numerical simulations. Our empirical illustration of a Colombian scholarship study reveals a richer heterogeneity (including its absence) of the treatment effect that is hidden in the original estimates.
We explore how much knowing a parametric restriction on propensity scores improves semiparametric efficiency bounds in the potential outcome framework. For stratified propensity scores, considered as a parametric model, we derive explicit formulas for the efficiency gain from knowing how the covariate space is split. Based on these, we find that the efficiency gain decreases as the partition of the stratification becomes finer. For general parametric models, where it is hard to obtain explicit representations of efficiency bounds, we propose a novel framework that enables us to see whether knowing a parametric model is valuable in terms of efficiency even when it is very high-dimensional. In addition to the intuitive fact that knowing the parametric model does not help much if it is sufficiently flexible, we reveal that the efficiency gain can be nearly zero even though the parametric assumption significantly restricts the space of possible propensity scores.
Correctness properties are critical to conducting verification and validation on software systems, especially those cyberphysical systems whose functionality changes frequently due to software updates, changes in the operating environment, or newly learned behaviors. We detail a novel method to automatically construct expressive, executable correctness properties in the form of machine-learned correctness properties which can be used to ensure that a system's behavior is correct with respect to its design and operating requirements. We propose a method to bootstrap the creation of these correctness properties using a novel simulation-based generation of training and testing data using multiple extensions to the Cross Entropy algorithm for search-based optimization. Then, we apply this method to a software-in-the-loop evaluation of an autonomous vehicle to demonstrate that such models can assert about important properties of multi-agent cyberphysical systems. We demonstrate that this process brings the task of developing robust correctness properties from the realm of formal methods experts into the domain of system developers and engineers, and that machine-learned correctness properties are expressive enough to capture the correct behavior of cyberphysical systems in their complex environments. This advancement can provide evidence of dependability to system designers and users, enhancing trust in the deployment of autonomous vehicles and other intelligent transportation systems.
Bayesian optimization has been successfully applied to optimize black-box functions where the number of evaluations is severely limited. However, in many real-world applications, it is hard or impossible to know in advance which designs are feasible due to some physical or system limitations. These issues lead to an even more challenging problem of optimizing an unknown function with unknown constraints. In this paper, we observe that in such scenarios optimal solution typically lies on the boundary between feasible and infeasible regions of the design space, making it considerably more difficult than that with interior optima. Inspired by this observation, we propose BE-CBO, a new Bayesian optimization method that efficiently explores the boundary between feasible and infeasible designs. To identify the boundary, we learn the constraints with an ensemble of neural networks that outperform the standard Gaussian Processes for capturing complex boundaries. Our method demonstrates superior performance against state-of-the-art methods through comprehensive experiments on synthetic and real-world benchmarks.
Robust fine-tuning aims to ensure performance on out-of-distribution (OOD) samples, which is sometimes compromised by pursuing adaptation on in-distribution (ID) samples. However, another criterion for reliable machine learning -- confidence calibration has been overlooked despite its increasing demand for real-world high-stakes applications, e.g., autonomous driving. We raise concerns about the calibration of fine-tuned vision-language models (VLMs) under distribution shift by showing that naive fine-tuning and even state-of-the-art robust fine-tuning hurt the calibration of pre-trained VLMs, especially on OOD datasets. We first show the OOD calibration error is bounded from above with ID calibration errors and domain discrepancy between ID and OOD. From this analysis, we propose CaRot, a calibrated robust fine-tuning method that incentivizes ID calibration and robust prediction across domains to reduce the upper bound of OOD calibration error. Extensive experiments on three types of distribution shifts (natural, synthetic, and adversarial) on ImageNet-1K classification demonstrate the effectiveness of CaRot across diverse environments. We justify the empirical success of CaRot through our theoretical analysis.
The linear Fisher market (LFM) is a basic equilibrium model from economics, which also has applications in fair and efficient resource allocation. First-price pacing equilibrium (FPPE) is a model capturing budget-management mechanisms in first-price auctions. In certain practical settings such as advertising auctions, there is an interest in performing statistical inference over these models. A popular methodology for general statistical inference is the bootstrap procedure. Yet, for LFM and FPPE there is no existing theory for the valid application of bootstrap procedures. In this paper, we introduce and devise several statistically valid bootstrap inference procedures for LFM and FPPE. The most challenging part is to bootstrap general FPPE, which reduces to bootstrapping constrained M-estimators, a largely unexplored problem. We devise a bootstrap procedure for FPPE under mild degeneracy conditions by using the powerful tool of epi-convergence theory. Experiments with synthetic and semi-real data verify our theory.
Community detection is a crucial task in network analysis that can be significantly improved by incorporating subject-level information, i.e. covariates. However, current methods often struggle with selecting tuning parameters and analyzing low-degree nodes. In this paper, we introduce a novel method that addresses these challenges by constructing network-adjusted covariates, which leverage the network connections and covariates with a unique weight to each node based on the node's degree. Spectral clustering on network-adjusted covariates yields an exact recovery of community labels under certain conditions, which is tuning-free and computationally efficient. We present novel theoretical results about the strong consistency of our method under degree-corrected stochastic blockmodels with covariates, even in the presence of mis-specification and sparse communities with bounded degrees. Additionally, we establish a general lower bound for the community detection problem when both network and covariates are present, and it shows our method is optimal up to a constant factor. Our method outperforms existing approaches in simulations and a LastFM app user network, and provides interpretable community structures in a statistics publication citation network where $30\%$ of nodes are isolated.
Quantile regression is increasingly encountered in modern big data applications due to its robustness and flexibility. We consider the scenario of learning the conditional quantiles of a specific target population when the available data may go beyond the target and be supplemented from other sources that possibly share similarities with the target. A crucial question is how to properly distinguish and utilize useful information from other sources to improve the quantile estimation and inference at the target. We develop transfer learning methods for high-dimensional quantile regression by detecting informative sources whose models are similar to the target and utilizing them to improve the target model. We show that under reasonable conditions, the detection of the informative sources based on sample splitting is consistent. Compared to the naive estimator with only the target data, the transfer learning estimator achieves a much lower error rate as a function of the sample sizes, the signal-to-noise ratios, and the similarity measures among the target and the source models. Extensive simulation studies demonstrate the superiority of our proposed approach. We apply our methods to tackle the problem of detecting hard-landing risk for flight safety and show the benefits and insights gained from transfer learning of three different types of airplanes: Boeing 737, Airbus A320, and Airbus A380.
Social relations are often used to improve recommendation quality when user-item interaction data is sparse in recommender systems. Most existing social recommendation models exploit pairwise relations to mine potential user preferences. However, real-life interactions among users are very complicated and user relations can be high-order. Hypergraph provides a natural way to model complex high-order relations, while its potentials for improving social recommendation are under-explored. In this paper, we fill this gap and propose a multi-channel hypergraph convolutional network to enhance social recommendation by leveraging high-order user relations. Technically, each channel in the network encodes a hypergraph that depicts a common high-order user relation pattern via hypergraph convolution. By aggregating the embeddings learned through multiple channels, we obtain comprehensive user representations to generate recommendation results. However, the aggregation operation might also obscure the inherent characteristics of different types of high-order connectivity information. To compensate for the aggregating loss, we innovatively integrate self-supervised learning into the training of the hypergraph convolutional network to regain the connectivity information with hierarchical mutual information maximization. The experimental results on multiple real-world datasets show that the proposed model outperforms the SOTA methods, and the ablation study verifies the effectiveness of the multi-channel setting and the self-supervised task. The implementation of our model is available via //github.com/Coder-Yu/RecQ.
Multi-relation Question Answering is a challenging task, due to the requirement of elaborated analysis on questions and reasoning over multiple fact triples in knowledge base. In this paper, we present a novel model called Interpretable Reasoning Network that employs an interpretable, hop-by-hop reasoning process for question answering. The model dynamically decides which part of an input question should be analyzed at each hop; predicts a relation that corresponds to the current parsed results; utilizes the predicted relation to update the question representation and the state of the reasoning process; and then drives the next-hop reasoning. Experiments show that our model yields state-of-the-art results on two datasets. More interestingly, the model can offer traceable and observable intermediate predictions for reasoning analysis and failure diagnosis.