Universal Inference for Testing Calibration of Mean Estimates within the Exponential Dispersion Family

Fuente: arXiv
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Main Authors: Delong, Łukasz, Wüthrich, Mario
Format: Preprint
Published: 2025
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author Delong, Łukasz
Wüthrich, Mario
author_facet Delong, Łukasz
Wüthrich, Mario
contents Calibration of mean estimates for predictions is a crucial property in many applications, particularly in the fields of financial and actuarial decision-making. In this paper, we first review classical approaches for validating mean-calibration, and we discuss the Likelihood Ratio Test (LRT) within the Exponential Dispersion Family (EDF). Then, we investigate the framework of universal inference to test for mean-calibration. We develop a sub-sampled split LRT within the EDF that provides finite sample guarantees with universally valid critical values. We investigate type I error, power and e-power of this sub-sampled split LRT, we compare it to the classical LRT, and we propose a novel test statistics based on the sub-sampled split LRT to enhance the performance of the calibration test. A numerical analysis verifies that our proposal is an attractive alternative to the classical LRT achieving a high power in detecting miscalibration.
format Preprint
id arxiv_https___arxiv_org_abs_2510_23821
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Universal Inference for Testing Calibration of Mean Estimates within the Exponential Dispersion Family
Delong, Łukasz
Wüthrich, Mario
Applications
62P05
G.3
Calibration of mean estimates for predictions is a crucial property in many applications, particularly in the fields of financial and actuarial decision-making. In this paper, we first review classical approaches for validating mean-calibration, and we discuss the Likelihood Ratio Test (LRT) within the Exponential Dispersion Family (EDF). Then, we investigate the framework of universal inference to test for mean-calibration. We develop a sub-sampled split LRT within the EDF that provides finite sample guarantees with universally valid critical values. We investigate type I error, power and e-power of this sub-sampled split LRT, we compare it to the classical LRT, and we propose a novel test statistics based on the sub-sampled split LRT to enhance the performance of the calibration test. A numerical analysis verifies that our proposal is an attractive alternative to the classical LRT achieving a high power in detecting miscalibration.
title Universal Inference for Testing Calibration of Mean Estimates within the Exponential Dispersion Family
topic Applications
62P05
G.3
url https://arxiv.org/abs/2510.23821