SWIM

Scenario Weights for Importance Measurement

CRAN Package

An efficient sensitivity analysis for stochastic models based on Monte Carlo samples. Provides weights on simulated scenarios from a stochastic model, such that stressed random variables fulfil given probabilistic constraints (e.g. specified values for risk measures), under the new scenario weights. Scenario weights are selected by constrained minimisation of the relative entropy to the baseline model. The 'SWIM' package is based on Pesenti S.M., Millossovich P., Tsanakas A. (2019) "Reverse Sensitivity Testing: What does it take to break the model" and Pesenti S.M. (2021) "Reverse Sensitivity Analysis for Risk Modelling" https://www.ssrn.com/abstract=3878879.


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