We introduce a new class of neural networks designed to be convex functions of their inputs, leveraging the principle that any convex function can be represented as the supremum of the affine functions it dominates. These neural networks, inherently convex with respect to their inputs, are particularly well-suited for approximating the prices of options with convex payoffs. We detail the architecture of this, and establish theoretical convergence bounds that validate its approximation capabilities. We also introduce a \emph{scrambling} phase to improve the training of these networks. Finally, we demonstrate numerically the effectiveness of these networks in estimating prices for three types of options with convex payoffs: Basket, Bermudan, and Swing options.

Phenotypic (or Physical) characteristics of plant species are commonly used to perform clustering. In one of our recent works (Shastri et al. (2021)), we used a probabilistically sampled (using pivotal sampling) and spectrally clustered algorithm to group soybean species. These techniques were used to obtain highly accurate clusterings at a reduced cost. In this work, we extend the earlier algorithm to cluster rice species. We improve the base algorithm in three ways. First, we propose a new function to build the similarity matrix in Spectral Clustering. Commonly, a natural exponential function is used for this purpose. Based upon the spectral graph theory and the involved Cheeger's inequality, we propose the use a base "a" exponential function instead. This gives a similarity matrix spectrum favorable for clustering, which we support via an eigenvalue analysis. Second, the function used to build the similarity matrix in Spectral Clustering was earlier scaled with a fixed factor (called global scaling). Based upon the idea of Zelnik-Manor and Perona (2004), we now use a factor that varies with matrix elements (called local scaling) and works better. Third, to compute the inclusion probability of a specie in the pivotal sampling algorithm, we had earlier used the notion of deviation that captured how far specie's characteristic values were from their respective base values (computed over all species). A maximum function was used before to find the base values. We now use a median function, which is more intuitive. We support this choice using a statistical analysis. With experiments on 1865 rice species, we demonstrate that in terms of silhouette values, our new Sampled Spectral Clustering is 61% better than Hierarchical Clustering (currently prevalent). Also, our new algorithm is significantly faster than Hierarchical Clustering due to the involved sampling.

We study the size of a neural network needed to approximate the maximum function over $d$ inputs, in the most basic setting of approximating with respect to the $L_2$ norm, for continuous distributions, for a network that uses ReLU activations. We provide new lower and upper bounds on the width required for approximation across various depths. Our results establish new depth separations between depth 2 and 3, and depth 3 and 5 networks, as well as providing a depth $\mathcal{O}(\log(\log(d)))$ and width $\mathcal{O}(d)$ construction which approximates the maximum function. Our depth separation results are facilitated by a new lower bound for depth 2 networks approximating the maximum function over the uniform distribution, assuming an exponential upper bound on the size of the weights. Furthermore, we are able to use this depth 2 lower bound to provide tight bounds on the number of neurons needed to approximate the maximum by a depth 3 network. Our lower bounds are of potentially broad interest as they apply to the widely studied and used \emph{max} function, in contrast to many previous results that base their bounds on specially constructed or pathological functions and distributions.

Deep learning researchers have a keen interest in proposing two new novel activation functions which can boost network performance. A good choice of activation function can have significant consequences in improving network performance. A handcrafted activation is the most common choice in neural network models. ReLU is the most common choice in the deep learning community due to its simplicity though ReLU has some serious drawbacks. In this paper, we have proposed a new novel activation function based on approximation of known activation functions like Leaky ReLU, and we call this function Smooth Maximum Unit (SMU). Replacing ReLU by SMU, we have got 6.22% improvement in the CIFAR100 dataset with the ShuffleNet V2 model.