Combining Evidence Across Filtrations

Fuente: arXiv
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Auteurs principaux: Choe, Yo Joong, Ramdas, Aaditya
Format: Preprint
Publié: 2024
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author Choe, Yo Joong
Ramdas, Aaditya
author_facet Choe, Yo Joong
Ramdas, Aaditya
contents In sequential anytime-valid inference, any admissible procedure must be based on e-processes: generalizations of test martingales that quantify the accumulated evidence against a composite null hypothesis at any stopping time. This paper proposes a method for combining e-processes constructed in different filtrations but for the same null. Although e-processes in the same filtration can be combined effortlessly (by averaging), e-processes in different filtrations cannot because their validity in a coarser filtration does not translate to a finer filtration. This issue arises in sequential tests of randomness and independence, as well as in the evaluation of sequential forecasters. We establish that a class of functions called adjusters can lift arbitrary e-processes across filtrations. The result yields a generally applicable "adjust-then-combine" procedure, which we demonstrate on the problem of testing randomness in real-world financial data. Furthermore, we prove a characterization theorem for adjusters that formalizes a sense in which using adjusters is necessary. There are two major implications. First, if we have a powerful e-process in a coarsened filtration, then we readily have a powerful e-process in the original filtration. Second, when we coarsen the filtration to construct an e-process, there is a logarithmic cost to recovering validity in the original filtration.
format Preprint
id arxiv_https___arxiv_org_abs_2402_09698
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Combining Evidence Across Filtrations
Choe, Yo Joong
Ramdas, Aaditya
Methodology
Machine Learning
Probability
Statistics Theory
In sequential anytime-valid inference, any admissible procedure must be based on e-processes: generalizations of test martingales that quantify the accumulated evidence against a composite null hypothesis at any stopping time. This paper proposes a method for combining e-processes constructed in different filtrations but for the same null. Although e-processes in the same filtration can be combined effortlessly (by averaging), e-processes in different filtrations cannot because their validity in a coarser filtration does not translate to a finer filtration. This issue arises in sequential tests of randomness and independence, as well as in the evaluation of sequential forecasters. We establish that a class of functions called adjusters can lift arbitrary e-processes across filtrations. The result yields a generally applicable "adjust-then-combine" procedure, which we demonstrate on the problem of testing randomness in real-world financial data. Furthermore, we prove a characterization theorem for adjusters that formalizes a sense in which using adjusters is necessary. There are two major implications. First, if we have a powerful e-process in a coarsened filtration, then we readily have a powerful e-process in the original filtration. Second, when we coarsen the filtration to construct an e-process, there is a logarithmic cost to recovering validity in the original filtration.
title Combining Evidence Across Filtrations
topic Methodology
Machine Learning
Probability
Statistics Theory
url https://arxiv.org/abs/2402.09698