Practical Boundary Degeneracy and Reverse-Martingale Limits in Sequential Binary Models

Fuente: arXiv
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Main Author: Chang, Yuan-chin Ivan
Format: Preprint
Published: 2026
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author Chang, Yuan-chin Ivan
author_facet Chang, Yuan-chin Ivan
contents A run of all failures, a run of all successes, or complete separation in a logistic regression each tempts the analyst to declare a probability of exactly zero or one. The central message of this paper is that all three phenomena share a common structure: finite sequential data justify practical boundary statements of the form $p\leq\varepsilon$ or $p\geq1-\varepsilon$, but not exact boundary probabilities. The paper's contribution is to unify these three settings under a single reverse-martingale framework and to derive a stopping rule, $τ_{\mathrm{RM}}$, that requires three conditions simultaneously -- boundary closeness $B_n\leq\varepsilon$, uncertainty width $W_n\leq w$, and trajectory stability $r_n\leqη$ -- rather than boundary closeness alone. The reverse-martingale view recasts boundary degeneracy as a property of the limiting conditional law $M_\infty=\E(Y\given\G_\infty)$ rather than a finite-sample event, complementing classical one-sided binomial tests and Wald's sequential probability ratio test without replacing them. Numerical studies across Bernoulli rare-event trials, low- and high-dimensional logistic regression, controlled risk trajectories, and a real health-economics data set demonstrate that boundary closeness alone is an unreliable stopping signal, and that the stability condition separates transient apparent certainty from genuine limiting degeneracy.
format Preprint
id arxiv_https___arxiv_org_abs_2605_02274
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Practical Boundary Degeneracy and Reverse-Martingale Limits in Sequential Binary Models
Chang, Yuan-chin Ivan
Methodology
60G42, 62L12, 62F03, 62J12
A run of all failures, a run of all successes, or complete separation in a logistic regression each tempts the analyst to declare a probability of exactly zero or one. The central message of this paper is that all three phenomena share a common structure: finite sequential data justify practical boundary statements of the form $p\leq\varepsilon$ or $p\geq1-\varepsilon$, but not exact boundary probabilities. The paper's contribution is to unify these three settings under a single reverse-martingale framework and to derive a stopping rule, $τ_{\mathrm{RM}}$, that requires three conditions simultaneously -- boundary closeness $B_n\leq\varepsilon$, uncertainty width $W_n\leq w$, and trajectory stability $r_n\leqη$ -- rather than boundary closeness alone. The reverse-martingale view recasts boundary degeneracy as a property of the limiting conditional law $M_\infty=\E(Y\given\G_\infty)$ rather than a finite-sample event, complementing classical one-sided binomial tests and Wald's sequential probability ratio test without replacing them. Numerical studies across Bernoulli rare-event trials, low- and high-dimensional logistic regression, controlled risk trajectories, and a real health-economics data set demonstrate that boundary closeness alone is an unreliable stopping signal, and that the stability condition separates transient apparent certainty from genuine limiting degeneracy.
title Practical Boundary Degeneracy and Reverse-Martingale Limits in Sequential Binary Models
topic Methodology
60G42, 62L12, 62F03, 62J12
url https://arxiv.org/abs/2605.02274