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Negative Probability
The probability of the outcome of an experiment is never negative, although a quasiprobability distribution allows a negative probability, or quasiprobability for some events. These distributions may apply to unobservable events or conditional probabilities. Physics and mathematics In 1942, Paul Dirac wrote a paper "The Physical Interpretation of Quantum Mechanics" where he introduced the concept of negative energies and negative probabilities: The idea of negative probabilities later received increased attention in physics and particularly in quantum mechanics. Richard Feynman argued that no one objects to using negative numbers in calculations: although "minus three apples" is not a valid concept in real life, negative money is valid. Similarly he argued how negative probabilities as well as probabilities above unity possibly could be useful in probability calculations. Negative probabilities have later been suggested to solve several problems and paradoxes. ''Half-coins'' p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Probability
Probability is the branch of mathematics concerning numerical descriptions of how likely an Event (probability theory), event is to occur, or how likely it is that a proposition is true. The probability of an event is a number between 0 and 1, where, roughly speaking, 0 indicates impossibility of the event and 1 indicates certainty."Kendall's Advanced Theory of Statistics, Volume 1: Distribution Theory", Alan Stuart and Keith Ord, 6th Ed, (2009), .William Feller, ''An Introduction to Probability Theory and Its Applications'', (Vol 1), 3rd Ed, (1968), Wiley, . The higher the probability of an event, the more likely it is that the event will occur. A simple example is the tossing of a fair (unbiased) coin. Since the coin is fair, the two outcomes ("heads" and "tails") are both equally probable; the probability of "heads" equals the probability of "tails"; and since no other outcomes are possible, the probability of either "heads" or "tails" is 1/2 (which could also be written ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wigner Quasiprobability Distribution
The Wigner quasiprobability distribution (also called the Wigner function or the Wigner–Ville distribution, after Eugene Wigner and Jean-André Ville) is a quasiprobability distribution. It was introduced by Eugene Wigner in 1932 to study quantum corrections to classical statistical mechanics. The goal was to link the wavefunction that appears in Schrödinger's equation to a probability distribution in phase space. It is a generating function for all spatial autocorrelation functions of a given quantum-mechanical wavefunction . Thus, it maps on the quantum density matrix in the map between real phase-space functions and Hermitian operators introduced by Hermann Weyl in 1927, in a context related to representation theory in mathematics (see Weyl quantization). In effect, it is the Wigner–Weyl transform of the density matrix, so the realization of that operator in phase space. It was later rederived by Jean Ville in 1948 as a quadratic (in signal) representation of the local ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quantum Mechanics
Quantum mechanics is a fundamental theory in physics that provides a description of the physical properties of nature at the scale of atoms and subatomic particles. It is the foundation of all quantum physics including quantum chemistry, quantum field theory, quantum technology, and quantum information science. Classical physics, the collection of theories that existed before the advent of quantum mechanics, describes many aspects of nature at an ordinary (macroscopic) scale, but is not sufficient for describing them at small (atomic and subatomic) scales. Most theories in classical physics can be derived from quantum mechanics as an approximation valid at large (macroscopic) scale. Quantum mechanics differs from classical physics in that energy, momentum, angular momentum, and other quantities of a bound system are restricted to discrete values ( quantization); objects have characteristics of both particles and waves (wave–particle duality); and there are limits to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Signed Measure
In mathematics, signed measure is a generalization of the concept of (positive) measure by allowing the set function to take negative values. Definition There are two slightly different concepts of a signed measure, depending on whether or not one allows it to take infinite values. Signed measures are usually only allowed to take finite real values, while some textbooks allow them to take infinite values. To avoid confusion, this article will call these two cases "finite signed measures" and "extended signed measures". Given a measurable space (X, \Sigma) (that is, a set X with a σ-algebra \Sigma on it), an extended signed measure is a set function In mathematics, especially measure theory, a set function is a function whose domain is a family of subsets of some given set and that (usually) takes its values in the extended real number line \R \cup \, which consists of the real numbers \R a ... \mu : \Sigma \to \R \cup \ such that \mu(\varnothing) = 0 and \mu is sigma additi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ghosts (physics)
In the terminology of quantum field theory, a ghost, ghost field, ghost particle, or gauge ghost is an unphysical state in a gauge theory. Ghosts are necessary to keep gauge invariance in theories where the local fields exceed a number of physical degrees of freedom. If a given theory is self-consistent by the introduction of ghosts, these states are labeled "good". Good ghosts are virtual particles that are introduced for regularization, like Faddeev–Popov ghosts. Otherwise, "bad" ghosts admit undesired non-virtual states in a theory, like Pauli–Villars ghosts that introduce particles with negative kinetic energy. An example of the need of ghost fields is the photon, which is usually described by a four component vector potential , even if light has only two allowed polarizations in the vacuum. To remove the unphysical degrees of freedom, it is necessary to enforce some restrictions, one way to do this reduction is to introduce some ghost field in the theory. While it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pauli–Villars Regularization
__NOTOC__ In theoretical physics, Pauli–Villars regularization (P–V) is a procedure that isolates divergent terms from finite parts in loop calculations in field theory in order to renormalize the theory. Wolfgang Pauli and Felix Villars published the method in 1949, based on earlier work by Richard Feynman Richard Phillips Feynman (; May 11, 1918 – February 15, 1988) was an American theoretical physicist, known for his work in the path integral formulation of quantum mechanics, the theory of quantum electrodynamics, the physics of the superfl ..., Ernst Stueckelberg and Dominique Rivier. In this treatment, a divergence arising from a loop integral (such as vacuum polarization or electron self-energy) is modulated by a spectrum of auxiliary particles added to the Lagrangian (field theory), Lagrangian or propagator. When the masses of the fictitious particles are taken as an infinite limit (i.e., once the regulator is removed) one expects to recover the original theo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Option Pricing
In finance, a price (premium) is paid or received for purchasing or selling options. This article discusses the calculation of this premium in general. For further detail, see: for discussion of the mathematics; Financial engineering for the implementation; as well as generally. Premium components This price can be split into two components: intrinsic value, and time value. Intrinsic value The ''intrinsic value'' is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price. For a put option, the option is in-the-money if the ''strike'' price is higher than the underlying spot price; then the intrinsic value is the strike price minus the underlying spot price. Otherwise the intrinsic value is zero. For example, when a DJI call (bu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Neutral
In economics and finance, risk neutral preferences are preferences that are neither risk averse nor risk seeking. A risk neutral party's decisions are not affected by the degree of uncertainty in a set of outcomes, so a risk neutral party is indifferent between choices with equal expected payoffs even if one choice is riskier. For example, if offered either \$50 or a 50\% chance each of \$100 and \$0, a risk neutral person would have no preference. In contrast, a risk averse person would prefer the first offer, while a risk seeking person would prefer the second. Theory of the firm In the context of the theory of the firm, a risk neutral firm facing risk about the market price of its product, and caring only about profit, would maximize the expected value of its profit (with respect to its choices of labor input usage, output produced, etc.). But a risk averse firm in the same environment would typically take a more cautious approach. Portfolio theory In portfolio choice,Merton, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical Finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets. In general, there exist two separate branches of finance that require advanced quantitative techniques: derivatives pricing on the one hand, and risk and portfolio management on the other. Mathematical finance overlaps heavily with the fields of computational finance and financial engineering. The latter focuses on applications and modeling, often by help of stochastic asset models, while the former focuses, in addition to analysis, on building tools of implementation for the models. Also related is quantitative investing, which relies on statistical and numerical models (and lately machine learning) as opposed to traditional fundamental analysis when managing portfolios. French mathematician Louis Bachelier's doctoral thesis, defended in 1900, is considered the first scholarly work on mathematical fina ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Negative Joint Probability 2
Negative may refer to: Science and mathematics * Negative number * Negative mass * Negative energy * Negative charge, one of the two types of electric charge * Negative (electrical polarity), in electric circuits * Negative result (other) * Negative lenses, uses to describe diverging optics Photography * Negative (photography), an image with inverted luminance or a strip of film with such an image * Original camera negative, the film in a motion picture camera which captures the original image * Paper negative, a negative image printed on paper used to create the final print of a photograph Linguistics * A negative answer, commonly expressed with the word ''no'' * A type of grammatical construction; see affirmative and negative *A double negative is a construction occurring when two forms of grammatical negation are used in the same sentence. Music * Negative (Finnish band), a Finnish band established in 1997 * Negative (Serbian band), a Serbian band establi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expected Value
In probability theory, the expected value (also called expectation, expectancy, mathematical expectation, mean, average, or first moment) is a generalization of the weighted average. Informally, the expected value is the arithmetic mean of a large number of independently selected outcomes of a random variable. The expected value of a random variable with a finite number of outcomes is a weighted average of all possible outcomes. In the case of a continuum of possible outcomes, the expectation is defined by integration. In the axiomatic foundation for probability provided by measure theory, the expectation is given by Lebesgue integration. The expected value of a random variable is often denoted by , , or , with also often stylized as or \mathbb. History The idea of the expected value originated in the middle of the 17th century from the study of the so-called problem of points, which seeks to divide the stakes ''in a fair way'' between two players, who have to end th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Uncertainty Principle
In quantum mechanics, the uncertainty principle (also known as Heisenberg's uncertainty principle) is any of a variety of mathematical inequalities asserting a fundamental limit to the accuracy with which the values for certain pairs of physical quantities of a particle, such as position, ''x'', and momentum, ''p'', can be predicted from initial conditions. Such variable pairs are known as complementary variables or canonically conjugate variables; and, depending on interpretation, the uncertainty principle limits to what extent such conjugate properties maintain their approximate meaning, as the mathematical framework of quantum physics does not support the notion of simultaneously well-defined conjugate properties expressed by a single value. The uncertainty principle implies that it is in general not possible to predict the value of a quantity with arbitrary certainty, even if all initial conditions are specified. Introduced first in 1927 by the German physicist Werner ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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