Weighted compositional functional data analysis for modeling and forecasting life-table death counts

Fuente: arXiv
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Main Authors: Shang, Han Lin, Haberman, Steven
Format: Preprint
Published: 2025
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author Shang, Han Lin
Haberman, Steven
author_facet Shang, Han Lin
Haberman, Steven
contents Age-specific life-table death counts observed over time are examples of densities. Non-negativity and summability are constraints that sometimes require modifications of standard linear statistical methods. The centered log-ratio transformation presents a mapping from a constrained to a less constrained space. With a time series of densities, forecasts are more relevant to the recent data than the data from the distant past. We introduce a weighted compositional functional data analysis for modeling and forecasting life-table death counts. Our extension assigns higher weights to more recent data and provides a modeling scheme easily adapted for constraints. We illustrate our method using age-specific Swedish life-table death counts from 1751 to 2020. Compared to their unweighted counterparts, the weighted compositional data analytic method improves short-term point and interval forecast accuracies. The improved forecast accuracy could help actuaries improve the pricing of annuities and setting of reserves.
format Preprint
id arxiv_https___arxiv_org_abs_2510_22988
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Weighted compositional functional data analysis for modeling and forecasting life-table death counts
Shang, Han Lin
Haberman, Steven
Methodology
62R10
Age-specific life-table death counts observed over time are examples of densities. Non-negativity and summability are constraints that sometimes require modifications of standard linear statistical methods. The centered log-ratio transformation presents a mapping from a constrained to a less constrained space. With a time series of densities, forecasts are more relevant to the recent data than the data from the distant past. We introduce a weighted compositional functional data analysis for modeling and forecasting life-table death counts. Our extension assigns higher weights to more recent data and provides a modeling scheme easily adapted for constraints. We illustrate our method using age-specific Swedish life-table death counts from 1751 to 2020. Compared to their unweighted counterparts, the weighted compositional data analytic method improves short-term point and interval forecast accuracies. The improved forecast accuracy could help actuaries improve the pricing of annuities and setting of reserves.
title Weighted compositional functional data analysis for modeling and forecasting life-table death counts
topic Methodology
62R10
url https://arxiv.org/abs/2510.22988