Modeling conditional distributions of continuous variables in bayesian networks

  • Authors:
  • Barry R. Cobb;Rafael Rumí;Antonio Salmerón

  • Affiliations:
  • Department of Economics and Business, Virginia Military Institute, Lexington, VA;Department of Statistics and Applied Mathematics, University of Almería, Almería, Spain;Department of Statistics and Applied Mathematics, University of Almería, Almería, Spain

  • Venue:
  • IDA'05 Proceedings of the 6th international conference on Advances in Intelligent Data Analysis
  • Year:
  • 2005

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Abstract

The MTE (mixture of truncated exponentials) model was introduced as a general solution to the problem of specifying conditional distributions for continuous variables in Bayesian networks, especially as an alternative to discretization. In this paper we compare the behavior of two different approaches for constructing conditional MTE models in an example taken from Finance, which is a domain were uncertain variables commonly have continuous conditional distributions.