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Correlation gap, the Glossary

Index Correlation gap

In stochastic programming, the correlation gap is the worst-case ratio between the cost when the random variables are correlated to the cost when the random variables are independent.[1]

Table of Contents

  1. 8 relations: Bayesian-optimal mechanism, Bayesian-optimal pricing, Correlation, Independence (probability theory), Info-gap decision theory, Robust optimization, Stochastic programming, Submodular set function.

  2. Stochastic optimization

Bayesian-optimal mechanism

A Bayesian-optimal mechanism (BOM) is a mechanism in which the designer does not know the valuations of the agents for whom the mechanism is designed, but the designer knows that they are random variables and knows the probability distribution of these variables.

See Correlation gap and Bayesian-optimal mechanism

Bayesian-optimal pricing

Bayesian-optimal pricing (BO pricing) is a kind of algorithmic pricing in which a seller determines the sell-prices based on probabilistic assumptions on the valuations of the buyers.

See Correlation gap and Bayesian-optimal pricing

Correlation

In statistics, correlation or dependence is any statistical relationship, whether causal or not, between two random variables or bivariate data.

See Correlation gap and Correlation

Independence (probability theory)

Independence is a fundamental notion in probability theory, as in statistics and the theory of stochastic processes.

See Correlation gap and Independence (probability theory)

Info-gap decision theory

Info-gap decision theory seeks to optimize robustness to failure under severe uncertainty,Yakov Ben-Haim, Information-Gap Theory: Decisions Under Severe Uncertainty, Academic Press, London, 2001.

See Correlation gap and Info-gap decision theory

Robust optimization

Robust optimization is a field of mathematical optimization theory that deals with optimization problems in which a certain measure of robustness is sought against uncertainty that can be represented as deterministic variability in the value of the parameters of the problem itself and/or its solution.

See Correlation gap and Robust optimization

Stochastic programming

In the field of mathematical optimization, stochastic programming is a framework for modeling optimization problems that involve uncertainty. Correlation gap and stochastic programming are stochastic optimization.

See Correlation gap and Stochastic programming

Submodular set function

In mathematics, a submodular set function (also known as a submodular function) is a set function that, informally, describes the relationship between a set of inputs and an output, where adding more of one input has a decreasing additional benefit (diminishing returns).

See Correlation gap and Submodular set function

See also

Stochastic optimization

References

[1] https://en.wikipedia.org/wiki/Correlation_gap