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The discrepancy between realized volatility and the market's view of volatility has been known to predict individual equity options at the monthly horizon. It is not clear how this predictability depends on a forecast's ability to predict…

Statistical Finance · Quantitative Finance 2025-06-10 Austin Pollok

Analyzing classification model performance is a crucial task for machine learning practitioners. While practitioners often use count-based metrics derived from confusion matrices, like accuracy, many applications, such as weather…

Human-Computer Interaction · Computer Science 2022-07-29 Peter Xenopoulos , Joao Rulff , Luis Gustavo Nonato , Brian Barr , Claudio Silva

What do binary (or probabilistic) forecasting abilities have to do with overall performance? We map the difference between (univariate) binary predictions, bets and "beliefs" (expressed as a specific "event" will happen/will not happen) and…

General Finance · Quantitative Finance 2020-04-10 Nassim Nicholas Taleb

Plotting the residuals is a recommended procedure to diagnose deviations from linear model assumptions, such as non-linearity, heteroscedasticity, and non-normality. The presence of structure in residual plots can be tested using the lineup…

Machine Learning · Statistics 2024-11-05 Weihao Li , Dianne Cook , Emi Tanaka , Susan VanderPlas , Klaus Ackermann

Many applications such as election forecasting, environmental monitoring, health policy, and graph based machine learning require taking expectation of functions defined on the vertices of a graph. We describe a construction of a sampling…

Machine Learning · Computer Science 2021-06-09 A. Cloninger , H. N. Mhaskar

Overplotted line charts can obscure trends in temporal data and hinder prediction. We conduct a user study comparing three alternatives-aggregated, trellis, and spiral line charts against standard line charts on tasks involving trend…

Human-Computer Interaction · Computer Science 2025-10-15 Rifat Ara Proma , Ghulam Jilani Quadri , Paul Rosen

When an analyst or scientist has a belief about how the world works, their thinking can be biased in favor of that belief. Therefore, one bedrock principle of science is to minimize that bias by testing the predictions of one's belief…

Human-Computer Interaction · Computer Science 2022-08-10 Cindy Xiong , Chase Stokes , Yea-Seul Kim , Steven Franconeri

Applications such as weather forecasting and personalized medicine demand models that output calibrated probability estimates---those representative of the true likelihood of a prediction. Most models are not calibrated out of the box but…

Machine Learning · Computer Science 2020-02-03 Ananya Kumar , Percy Liang , Tengyu Ma

The key concepts (calibration, discrimination, and discordance) important in understanding and comparing risk models are best conveyed graphically. To illustrate this, models predicting death and acute kidney injury in a large cohort of PCI…

Quantitative Methods · Quantitative Biology 2015-04-21 Ralph H. Stern , Dean E. Smith , Hitinder S. Gurm

A machine learning model is calibrated if its predicted probability for an outcome matches the observed frequency for that outcome conditional on the model prediction. This property has become increasingly important as the impact of machine…

Machine Learning · Computer Science 2025-02-25 Muthu Chidambaram , Rong Ge

Calibration is a pivotal aspect in predictive modeling, as it ensures that the predictions closely correspond with what we observe empirically. The contemporary calibration framework, however, is predominantly focused on prediction models…

Methodology · Statistics 2023-09-18 Bavo De Cock Campo

This paper introduces a simple measure of a concordance pattern among observed outcomes along a network, i.e., the pattern in which adjacent outcomes tend to be more strongly correlated than non-adjacent outcomes. The graph concordance…

Methodology · Statistics 2017-09-04 Kyungchul Song

This paper presents a quantitative user study to evaluate how well users can visually perceive the underlying data distribution from a histogram representation. We used different sample and bin sizes and four different distributions…

Human-Computer Interaction · Computer Science 2021-09-15 Raphael Sahann , Torsten Möller , Johanna Schmidt

We analyze a new algorithm for probability forecasting of binary observations on the basis of the available data, without making any assumptions about the way the observations are generated. The algorithm is shown to be well calibrated and…

Machine Learning · Computer Science 2007-05-23 Vladimir Vovk

This paper tackles the challenge of detecting unreliable behavior in regression algorithms, which may arise from intrinsic variability (e.g., aleatoric uncertainty) or modeling errors (e.g., model uncertainty). First, we formally introduce…

Machine Learning · Computer Science 2024-06-12 Andres Altieri , Marco Romanelli , Georg Pichler , Florence Alberge , Pablo Piantanida

Calibrated predictions are useful because their numerical values can be interpreted as probabilities. Calibration errors are therefore widely used to evaluate, compare, and tune probabilistic predictors. Recently, Haghtalab et al. (2024)…

Machine Learning · Computer Science 2026-05-19 Yuxuan Lu , Yifan Wu , Jason Hartline , Lunjia Hu

We give a principled method for decomposing the predictive uncertainty of a model into aleatoric and epistemic components with explicit semantics relating them to the real-world data distribution. While many works in the literature have…

Machine Learning · Computer Science 2024-12-30 Gustaf Ahdritz , Aravind Gollakota , Parikshit Gopalan , Charlotte Peale , Udi Wieder

Understanding and comparing distributions of data (e.g., regarding their modes, shapes, or outliers) is a common challenge in many scientific disciplines. Typically, this challenge is addressed using side-by-side comparisons of histograms…

Human-Computer Interaction · Computer Science 2022-09-07 Anja Heim , Eduard Gröller , Christoph Heinzl

In a low-order model of the general circulation of the atmosphere we examine the predictability of threshold exceedance events of certain observables. The likelihood of such binary events -- the cornerstone also for the categoric (as…

Chaotic Dynamics · Physics 2015-10-28 Tamas Bodai

Calibration ensures that probabilistic forecasts meaningfully capture uncertainty by requiring that predicted probabilities align with empirical frequencies. However, many existing calibration methods are specialized for post-hoc…

Machine Learning · Computer Science 2023-11-01 Charles Marx , Sofian Zalouk , Stefano Ermon