Yiannis Dimotikalis is Assistant Professor of Quantitative Methods in the Department of Management Science and Technology at Hellenic Mediterranean University, Greece.Christos H. Skiadas was the Founder and Director of Data Analysis and Forecasting and Former Vice-Rector at the Technical University of Crete, Greece. He is the Chair of the Applied Stochastic Models and Data Analysis conference series.

• Part 1 Data Analysis Classification 1Chapter 1 Walking into the Digital Era: Comparison of the European Union Countries in the Last Decade 3Fernanda Otilia FIGUEIREDO and Adelaide FIGUEIREDO1.1 Introduction 31.2 Double principal component analysis: a brief description 71.3 Representation of the trajectories 81.4 Some final conclusions 111.5 Acknowledgements 121.6 References 12Chapter 2 Multivariate Kernel Discrimination Applied to Bank Loan Classification 13Mark Anthony CARUANA and Gabriele LENTINI2.1 Introduction 132.2 Multivariate kernel density estimation 142.3 Kernel discriminant analysis 172.4 Applying kernel discriminant analysis to local data 182.5 Conclusion 252.6 References 25Chapter 3 Introducing an Ontology of Adolescents' Digital Leisure 29George FILANDRIANOS, Aggeliki KAZANI, Dimitrios PARSANOGLOU, Maria SYMEONAKI and Giorgos STAMOU3.1 Introduction 293.2 Related work 323.3 Ontology 353.4 Description of the ontology construction 363.5 Data annotation 393.6 Conclusions 413.7 Acknowledgments 413.8 References 41Chapter 4 Blackjack and the Kelly Bet: A Simulation Assessment of Selected Playing Strategies 43Jim FREEMAN and Haoyu MIAO4.1 Introduction 434.2 Blackjack 444.3 Kelly bet 464.4 Simulation study 474.5 Empirical results 484.6 Conclusions 494.7 References 50Part 2 Estimators 51Chapter 5 An Evaluation of the Efficiency of a Shape Parameter Estimator for the Log-logistic Distribution 53Frederico CAEIRO and Ayana MATEUS5.1 Introduction 535.2 Estimation of the shape parameter 565.3 Simulation study 585.4 References 60Chapter 6 Restricted Minimum Density Power Divergence Estimator for Step-stress ALT with Nondestructive One-shot Devices 63Narayanaswamy BALAKRISHNAN, María JAENADA and Leandro PARDO6.1 Introduction 636.2 Minimum density power divergence estimator and restricted minimum density power divergence estimator 656.3 Influence function of the restricted minimum density power divergence estimator 686.4 Applications of the restricted MDPDE 696.5 Simulation study 736.6 Conclusions 756.7 References 75Part 3 Finance 77Chapter 7 Properties of American Options Under a Semi-Markov Modulated Black-Scholes Model 79Kouki TAKADA, Marko DIMITROV, Lu JIN and Ying NI7.1 Introduction 797.2 American option pricing 817.3 Exercising strategies 837.4 Conclusion 937.5 References 93Chapter 8 Numerical Studies of Implied Volatility Expansions Under the Gatheral Model 97Mohammed ALBUHAYRI, Marko DIMITROV, Ying NI and Anatoliy MALYARENKO8.1 Introduction 978.2 Previous results 998.3 Accuracy of the asymptotic expansions 1028.4 Numerical analysis 1058.5 Conclusion and future work 1068.6 Acknowledgments 1068.7 References 106Chapter 9 Constructing Trinominal Models Based on Cubature Method on Wiener Space: Applications to Pricing Financial Derivatives 109Hossein NOHROUZIAN, Anatoliy MALYARENKO and Ying NI9.1 Introduction and outline of this chapter 1099.2 Cubature formula in Black-Scholes and Black's models 1109.3 Constructing a trinomial tree via cubature formula 1139.4 Convergence to geometric Brownian motion 1159.5 Martingale probability measure 1229.6 Extension of the results and examples 1249.7 Discussion 1299.8 References 129Chapter 10 A Bayesian Approach to Measuring Risk on Portfolios with Many Assets 131Samuel BONELLO, David SUDA and Monique BORG INGUANEZ10.1 Introduction 13110.2, Dynamic principal component analysis 13310.3 The Bayesian GARCH(1,1) model 13510.4 Modeling a portfolio with many assets 13710.5 Forecasting and risk estimation 14010.6 Measuring predictive ability 14310.7 Conclusion 14410.8 Acknowledgments 14510.9 References 145Chapter 11 Financial Management of Four Hellenic Public Health Units Analysis and Evaluation through Numerical Indicators 147Maria SACHINIDOU and George MATALLIOTAKIS11.1 Introduction 14811.2 Theoretical framework 14811.3 Methodology 14911.4 Research results 14911.5 Conclusions 16211.6 References 163Part 4 Health Services 165Chapter 12 Lean Management as an Improvement Factor in Health Services The Case of Venizeleio General Hospital of Crete, Greece 167Eleni GENITSARIDI and George MATALLIOTAKIS12.1 Introduction 16812.2 Theoretical framework 16812.3 Purpose of the research 17212.4 Methodology 17212.5 Research results 17212.6 Conclusions 17912.7 References 180Chapter 13 Satisfaction of Employees in Primary and Secondary Healthcare Structures During the Pandemic Period in the Prefecture of Magnesia 183Sofia TRIKALLIOTI and George MATALLIOTAKIS13.1 Introduction 18413.2 The Covid-19 pandemic and its effects 18413.3 Job satisfaction of healthcare professionals 18513.4 Healthcare professionals and the burnout syndrome 18613.5 Research purpose 18813.6 Research methodology 18813.7 Research conclusions 18913.8 References 193Chapter 14 A Parametric Analysis of OpenFlow and P4 Protocols Based on Software Defined Networks 197Lincoln S PETER, Hlabishi I KOBO and Viranjay M SRIVASTAVA14.1 Introduction 19814.2 Motivation 20014.3 Challenges to the existing models 20214.4 Conclusions and future recommendations 20514.5 References 205Chapter 15 A Dynamic Neural Network Model for Accurate Recognition of Masked Faces 209Oladapo T IBITOYE and Viranjay M SRIVASTAVA15.1 Introduction 21015.2 Methodology 21315.3 Results and discussion 21715.4 Conclusions and future recommendations 220Chapter 16 An Action-based Monitoring Tool for Processes Subject to Multiple Quality Shifts 225Konstantina TSIOTA and Konstantinos A TASIAS16.1 Introduction 22516.2 Problem definition and assumptions 22716.3 Conventional versus proposed SPC approach 23016.4 Markov chain models 23216.5 Optimization problem 23816.6 Numerical analysis 23916.7 Conclusions 24216.8 References 242Chapter 17 Phi Divergence and Consistent Estimation for Stochastic Block Model 243Cyprien FERRARIS17.1 Introduction 24317.2 Statement of the problem 24417.3 Results 24717.4 Simulations 24817.5 Study of real dataset: email-Enron 25017.6 Summary and discussion 25117.7 Acknowledgment 25217.8 Appendix 25217.9 References 257List of Authors 259Index 263

Yiannis Dimotikalis is Assistant Professor of Quantitative Methods in the Department of Management Science and Technology at Hellenic Mediterranean University, Greece.Christos H. Skiadas was the Founder and Director of Data Analysis and Forecasting and Former Vice-Rector at the Technical University of Crete, Greece. He is the Chair of the Applied Stochastic Models and Data Analysis conference series.

• Part 1 Data Analysis Classification 1Chapter 1 Walking into the Digital Era: Comparison of the European Union Countries in the Last Decade 3Fernanda Otilia FIGUEIREDO and Adelaide FIGUEIREDO1.1 Introduction 31.2 Double principal component analysis: a brief description 71.3 Representation of the trajectories 81.4 Some final conclusions 111.5 Acknowledgements 121.6 References 12Chapter 2 Multivariate Kernel Discrimination Applied to Bank Loan Classification 13Mark Anthony CARUANA and Gabriele LENTINI2.1 Introduction 132.2 Multivariate kernel density estimation 142.3 Kernel discriminant analysis 172.4 Applying kernel discriminant analysis to local data 182.5 Conclusion 252.6 References 25Chapter 3 Introducing an Ontology of Adolescents' Digital Leisure 29George FILANDRIANOS, Aggeliki KAZANI, Dimitrios PARSANOGLOU, Maria SYMEONAKI and Giorgos STAMOU3.1 Introduction 293.2 Related work 323.3 Ontology 353.4 Description of the ontology construction 363.5 Data annotation 393.6 Conclusions 413.7 Acknowledgments 413.8 References 41Chapter 4 Blackjack and the Kelly Bet: A Simulation Assessment of Selected Playing Strategies 43Jim FREEMAN and Haoyu MIAO4.1 Introduction 434.2 Blackjack 444.3 Kelly bet 464.4 Simulation study 474.5 Empirical results 484.6 Conclusions 494.7 References 50Part 2 Estimators 51Chapter 5 An Evaluation of the Efficiency of a Shape Parameter Estimator for the Log-logistic Distribution 53Frederico CAEIRO and Ayana MATEUS5.1 Introduction 535.2 Estimation of the shape parameter 565.3 Simulation study 585.4 References 60Chapter 6 Restricted Minimum Density Power Divergence Estimator for Step-stress ALT with Nondestructive One-shot Devices 63Narayanaswamy BALAKRISHNAN, María JAENADA and Leandro PARDO6.1 Introduction 636.2 Minimum density power divergence estimator and restricted minimum density power divergence estimator 656.3 Influence function of the restricted minimum density power divergence estimator 686.4 Applications of the restricted MDPDE 696.5 Simulation study 736.6 Conclusions 756.7 References 75Part 3 Finance 77Chapter 7 Properties of American Options Under a Semi-Markov Modulated Black-Scholes Model 79Kouki TAKADA, Marko DIMITROV, Lu JIN and Ying NI7.1 Introduction 797.2 American option pricing 817.3 Exercising strategies 837.4 Conclusion 937.5 References 93Chapter 8 Numerical Studies of Implied Volatility Expansions Under the Gatheral Model 97Mohammed ALBUHAYRI, Marko DIMITROV, Ying NI and Anatoliy MALYARENKO8.1 Introduction 978.2 Previous results 998.3 Accuracy of the asymptotic expansions 1028.4 Numerical analysis 1058.5 Conclusion and future work 1068.6 Acknowledgments 1068.7 References 106Chapter 9 Constructing Trinominal Models Based on Cubature Method on Wiener Space: Applications to Pricing Financial Derivatives 109Hossein NOHROUZIAN, Anatoliy MALYARENKO and Ying NI9.1 Introduction and outline of this chapter 1099.2 Cubature formula in Black-Scholes and Black's models 1109.3 Constructing a trinomial tree via cubature formula 1139.4 Convergence to geometric Brownian motion 1159.5 Martingale probability measure 1229.6 Extension of the results and examples 1249.7 Discussion 1299.8 References 129Chapter 10 A Bayesian Approach to Measuring Risk on Portfolios with Many Assets 131Samuel BONELLO, David SUDA and Monique BORG INGUANEZ10.1 Introduction 13110.2, Dynamic principal component analysis 13310.3 The Bayesian GARCH(1,1) model 13510.4 Modeling a portfolio with many assets 13710.5 Forecasting and risk estimation 14010.6 Measuring predictive ability 14310.7 Conclusion 14410.8 Acknowledgments 14510.9 References 145Chapter 11 Financial Management of Four Hellenic Public Health Units Analysis and Evaluation through Numerical Indicators 147Maria SACHINIDOU and George MATALLIOTAKIS11.1 Introduction 14811.2 Theoretical framework 14811.3 Methodology 14911.4 Research results 14911.5 Conclusions 16211.6 References 163Part 4 Health Services 165Chapter 12 Lean Management as an Improvement Factor in Health Services The Case of Venizeleio General Hospital of Crete, Greece 167Eleni GENITSARIDI and George MATALLIOTAKIS12.1 Introduction 16812.2 Theoretical framework 16812.3 Purpose of the research 17212.4 Methodology 17212.5 Research results 17212.6 Conclusions 17912.7 References 180Chapter 13 Satisfaction of Employees in Primary and Secondary Healthcare Structures During the Pandemic Period in the Prefecture of Magnesia 183Sofia TRIKALLIOTI and George MATALLIOTAKIS13.1 Introduction 18413.2 The Covid-19 pandemic and its effects 18413.3 Job satisfaction of healthcare professionals 18513.4 Healthcare professionals and the burnout syndrome 18613.5 Research purpose 18813.6 Research methodology 18813.7 Research conclusions 18913.8 References 193Chapter 14 A Parametric Analysis of OpenFlow and P4 Protocols Based on Software Defined Networks 197Lincoln S PETER, Hlabishi I KOBO and Viranjay M SRIVASTAVA14.1 Introduction 19814.2 Motivation 20014.3 Challenges to the existing models 20214.4 Conclusions and future recommendations 20514.5 References 205Chapter 15 A Dynamic Neural Network Model for Accurate Recognition of Masked Faces 209Oladapo T IBITOYE and Viranjay M SRIVASTAVA15.1 Introduction 21015.2 Methodology 21315.3 Results and discussion 21715.4 Conclusions and future recommendations 220Chapter 16 An Action-based Monitoring Tool for Processes Subject to Multiple Quality Shifts 225Konstantina TSIOTA and Konstantinos A TASIAS16.1 Introduction 22516.2 Problem definition and assumptions 22716.3 Conventional versus proposed SPC approach 23016.4 Markov chain models 23216.5 Optimization problem 23816.6 Numerical analysis 23916.7 Conclusions 24216.8 References 242Chapter 17 Phi Divergence and Consistent Estimation for Stochastic Block Model 243Cyprien FERRARIS17.1 Introduction 24317.2 Statement of the problem 24417.3 Results 24717.4 Simulations 24817.5 Study of real dataset: email-Enron 25017.6 Summary and discussion 25117.7 Acknowledgment 25217.8 Appendix 25217.9 References 257List of Authors 259Index 263

Yiannis Dimotikalis is Assistant Professor of Quantitative Methods in the Department of Management Science and Technology at Hellenic Mediterranean University, Greece.Christos H. Skiadas was the Founder and Director of Data Analysis and Forecasting and Former Vice-Rector at the Technical University of Crete, Greece. He is the Chair of the Applied Stochastic Models and Data Analysis conference series.

• Part 1 Data Analysis Classification 1Chapter 1 Walking into the Digital Era: Comparison of the European Union Countries in the Last Decade 3Fernanda Otilia FIGUEIREDO and Adelaide FIGUEIREDO1.1 Introduction 31.2 Double principal component analysis: a brief description 71.3 Representation of the trajectories 81.4 Some final conclusions 111.5 Acknowledgements 121.6 References 12Chapter 2 Multivariate Kernel Discrimination Applied to Bank Loan Classification 13Mark Anthony CARUANA and Gabriele LENTINI2.1 Introduction 132.2 Multivariate kernel density estimation 142.3 Kernel discriminant analysis 172.4 Applying kernel discriminant analysis to local data 182.5 Conclusion 252.6 References 25Chapter 3 Introducing an Ontology of Adolescents' Digital Leisure 29George FILANDRIANOS, Aggeliki KAZANI, Dimitrios PARSANOGLOU, Maria SYMEONAKI and Giorgos STAMOU3.1 Introduction 293.2 Related work 323.3 Ontology 353.4 Description of the ontology construction 363.5 Data annotation 393.6 Conclusions 413.7 Acknowledgments 413.8 References 41Chapter 4 Blackjack and the Kelly Bet: A Simulation Assessment of Selected Playing Strategies 43Jim FREEMAN and Haoyu MIAO4.1 Introduction 434.2 Blackjack 444.3 Kelly bet 464.4 Simulation study 474.5 Empirical results 484.6 Conclusions 494.7 References 50Part 2 Estimators 51Chapter 5 An Evaluation of the Efficiency of a Shape Parameter Estimator for the Log-logistic Distribution 53Frederico CAEIRO and Ayana MATEUS5.1 Introduction 535.2 Estimation of the shape parameter 565.3 Simulation study 585.4 References 60Chapter 6 Restricted Minimum Density Power Divergence Estimator for Step-stress ALT with Nondestructive One-shot Devices 63Narayanaswamy BALAKRISHNAN, María JAENADA and Leandro PARDO6.1 Introduction 636.2 Minimum density power divergence estimator and restricted minimum density power divergence estimator 656.3 Influence function of the restricted minimum density power divergence estimator 686.4 Applications of the restricted MDPDE 696.5 Simulation study 736.6 Conclusions 756.7 References 75Part 3 Finance 77Chapter 7 Properties of American Options Under a Semi-Markov Modulated Black-Scholes Model 79Kouki TAKADA, Marko DIMITROV, Lu JIN and Ying NI7.1 Introduction 797.2 American option pricing 817.3 Exercising strategies 837.4 Conclusion 937.5 References 93Chapter 8 Numerical Studies of Implied Volatility Expansions Under the Gatheral Model 97Mohammed ALBUHAYRI, Marko DIMITROV, Ying NI and Anatoliy MALYARENKO8.1 Introduction 978.2 Previous results 998.3 Accuracy of the asymptotic expansions 1028.4 Numerical analysis 1058.5 Conclusion and future work 1068.6 Acknowledgments 1068.7 References 106Chapter 9 Constructing Trinominal Models Based on Cubature Method on Wiener Space: Applications to Pricing Financial Derivatives 109Hossein NOHROUZIAN, Anatoliy MALYARENKO and Ying NI9.1 Introduction and outline of this chapter 1099.2 Cubature formula in Black-Scholes and Black's models 1109.3 Constructing a trinomial tree via cubature formula 1139.4 Convergence to geometric Brownian motion 1159.5 Martingale probability measure 1229.6 Extension of the results and examples 1249.7 Discussion 1299.8 References 129Chapter 10 A Bayesian Approach to Measuring Risk on Portfolios with Many Assets 131Samuel BONELLO, David SUDA and Monique BORG INGUANEZ10.1 Introduction 13110.2, Dynamic principal component analysis 13310.3 The Bayesian GARCH(1,1) model 13510.4 Modeling a portfolio with many assets 13710.5 Forecasting and risk estimation 14010.6 Measuring predictive ability 14310.7 Conclusion 14410.8 Acknowledgments 14510.9 References 145Chapter 11 Financial Management of Four Hellenic Public Health Units Analysis and Evaluation through Numerical Indicators 147Maria SACHINIDOU and George MATALLIOTAKIS11.1 Introduction 14811.2 Theoretical framework 14811.3 Methodology 14911.4 Research results 14911.5 Conclusions 16211.6 References 163Part 4 Health Services 165Chapter 12 Lean Management as an Improvement Factor in Health Services The Case of Venizeleio General Hospital of Crete, Greece 167Eleni GENITSARIDI and George MATALLIOTAKIS12.1 Introduction 16812.2 Theoretical framework 16812.3 Purpose of the research 17212.4 Methodology 17212.5 Research results 17212.6 Conclusions 17912.7 References 180Chapter 13 Satisfaction of Employees in Primary and Secondary Healthcare Structures During the Pandemic Period in the Prefecture of Magnesia 183Sofia TRIKALLIOTI and George MATALLIOTAKIS13.1 Introduction 18413.2 The Covid-19 pandemic and its effects 18413.3 Job satisfaction of healthcare professionals 18513.4 Healthcare professionals and the burnout syndrome 18613.5 Research purpose 18813.6 Research methodology 18813.7 Research conclusions 18913.8 References 193Chapter 14 A Parametric Analysis of OpenFlow and P4 Protocols Based on Software Defined Networks 197Lincoln S PETER, Hlabishi I KOBO and Viranjay M SRIVASTAVA14.1 Introduction 19814.2 Motivation 20014.3 Challenges to the existing models 20214.4 Conclusions and future recommendations 20514.5 References 205Chapter 15 A Dynamic Neural Network Model for Accurate Recognition of Masked Faces 209Oladapo T IBITOYE and Viranjay M SRIVASTAVA15.1 Introduction 21015.2 Methodology 21315.3 Results and discussion 21715.4 Conclusions and future recommendations 220Chapter 16 An Action-based Monitoring Tool for Processes Subject to Multiple Quality Shifts 225Konstantina TSIOTA and Konstantinos A TASIAS16.1 Introduction 22516.2 Problem definition and assumptions 22716.3 Conventional versus proposed SPC approach 23016.4 Markov chain models 23216.5 Optimization problem 23816.6 Numerical analysis 23916.7 Conclusions 24216.8 References 242Chapter 17 Phi Divergence and Consistent Estimation for Stochastic Block Model 243Cyprien FERRARIS17.1 Introduction 24317.2 Statement of the problem 24417.3 Results 24717.4 Simulations 24817.5 Study of real dataset: email-Enron 25017.6 Summary and discussion 25117.7 Acknowledgment 25217.8 Appendix 25217.9 References 257List of Authors 259Index 263