Reasoning-Enhanced Rare-Event Prediction with Balanced Outcome Correction

Fuente: arXiv
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Autores principales: Bulgakov, Vitaly, Turchin, Alexander
Formato: Preprint
Publicado: 2026
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author Bulgakov, Vitaly
Turchin, Alexander
author_facet Bulgakov, Vitaly
Turchin, Alexander
contents Rare-event prediction is critical in domains such as healthcare, finance, reliability engineering, customer support, aviation safety, where positive outcomes are infrequent yet potentially catastrophic. Extreme class imbalance biases conventional models toward majority-class predictions, limiting recall, calibration, and operational usefulness. We propose LPCORP (Low-Prevalence CORrector for Prediction)*, a two-stage framework that combines reasoningenhanced prediction with confidence-based outcome correction. A reasoning model first produces enriched predictions from narrative inputs, after which a lightweight logistic-regression classifier evaluates and selectively corrects these outputs to mitigate prevalence-driven bias. We evaluate LPCORP on real-world datasets from medical and consumer service domains. The results show that this method transforms a highly imbalanced setting into a well-balanced one while preserving the original number of samples and without applying any resampling strategies. Test-set evaluation demonstrates substantially improved performance, particularly in precision, which is a known weakness in low-prevalence data. We further provide a costreduction analysis comparing the expenses associated with rare-event damage control without preventive measures to those incurred when low-cost, prediction-based preventive interventions are applied that showed more than 50% reduction in some cases. * Patent pending: U.S. Provisional 63/933,518, filed 8 December 2025.
format Preprint
id arxiv_https___arxiv_org_abs_2601_16406
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Reasoning-Enhanced Rare-Event Prediction with Balanced Outcome Correction
Bulgakov, Vitaly
Turchin, Alexander
Machine Learning
Artificial Intelligence
68T05
F.4.1; H.4.2; I.2.7
Rare-event prediction is critical in domains such as healthcare, finance, reliability engineering, customer support, aviation safety, where positive outcomes are infrequent yet potentially catastrophic. Extreme class imbalance biases conventional models toward majority-class predictions, limiting recall, calibration, and operational usefulness. We propose LPCORP (Low-Prevalence CORrector for Prediction)*, a two-stage framework that combines reasoningenhanced prediction with confidence-based outcome correction. A reasoning model first produces enriched predictions from narrative inputs, after which a lightweight logistic-regression classifier evaluates and selectively corrects these outputs to mitigate prevalence-driven bias. We evaluate LPCORP on real-world datasets from medical and consumer service domains. The results show that this method transforms a highly imbalanced setting into a well-balanced one while preserving the original number of samples and without applying any resampling strategies. Test-set evaluation demonstrates substantially improved performance, particularly in precision, which is a known weakness in low-prevalence data. We further provide a costreduction analysis comparing the expenses associated with rare-event damage control without preventive measures to those incurred when low-cost, prediction-based preventive interventions are applied that showed more than 50% reduction in some cases. * Patent pending: U.S. Provisional 63/933,518, filed 8 December 2025.
title Reasoning-Enhanced Rare-Event Prediction with Balanced Outcome Correction
topic Machine Learning
Artificial Intelligence
68T05
F.4.1; H.4.2; I.2.7
url https://arxiv.org/abs/2601.16406