This paper discusses the application of information-theoretic concepts to the backward filtering of time series using moving averages. We identify moving averages as time-dependent expectation values ...

As each heat bath is described by a thermal distribution, the total thermodynamic entropy production in the medium is given by Note that, by introducing transition rates, we have implicitly assumed ...

Model risk can be broadly defined as the possibility of suffering losses due to errors either in the development or use of models. Financial pricing and risk measurement are subject to model risk, and ...