Michal Koren

Tai Dinh, Wong Hauchi, Daniil Lisik et al.

This paper explores the critical role of data clustering in data science, emphasizing its methodologies, tools, and diverse applications. Traditional techniques, such as partitional and hierarchical clustering, are analyzed alongside advanced approaches such as data stream, density-based, graph-based, and model-based clustering for handling complex structured datasets. The paper highlights key principles underpinning clustering, outlines widely used tools and frameworks, introduces the workflow of clustering in data science, discusses challenges in practical implementation, and examines various applications of clustering. By focusing on these foundations and applications, the discussion underscores clustering's transformative potential. The paper concludes with insights into future research directions, emphasizing clustering's role in driving innovation and enabling data-driven decision-making.

Michal Koren, Or Peretz, Tai Dinh et al.

Sequential decisions in volatile, high-stakes settings require more than maximizing expected return; they require principled uncertainty management. This paper presents the Uncertainty-Aware Markov Decision Process (UAMDP), a unified framework that couples Bayesian forecasting, posterior-sampling reinforcement learning, and planning under a conditional value-at-risk (CVaR) constraint. In a closed loop, the agent updates its beliefs over latent dynamics, samples plausible futures via Thompson sampling, and optimizes policies subject to preset risk tolerances. We establish regret bounds that converge to the Bayes-optimal benchmark under standard regularity conditions. We evaluate UAMDP in two domains-high-frequency equity trading and retail inventory control-both marked by structural uncertainty and economic volatility. Relative to strong deep learning baselines, UAMDP improves long-horizon forecasting accuracy (RMSE decreases by up to 25\% and sMAPE by 32\%), and these gains translate into economic performance: the trading Sharpe ratio rises from 1.54 to 1.74 while maximum drawdown is roughly halved. These results show that integrating calibrated probabilistic modeling, exploration aligned with posterior uncertainty, and risk-aware control yields a robust, generalizable approach to safer and more profitable sequential decision-making.