Equitable scoring functions have a long history in meteorological forecast verification and have recently gained renewed prominence through the use of the Stable Equitable Error in Probability Space (SEEPS) score for evaluating precipitation forecasts from numerical and machine-learning weather prediction systems. This paper provides a systematic analysis of equitable scoring functions through the optimal forecasts they induce. We introduce the generalized diagonal score, which defines a broad class of equitable scoring functions that includes, up to equivalence, the SEEPS, Gerrity, Peirce, Barnston and diagonal scores. Within this framework, we show that optimal single-valued and categorical forecasts are characterized by crossing points between the predictive and climatological cumulative distribution functions. Moreover, we show that the generalized diagonal score, when evaluating predictive distributions, is proper but not strictly proper, and is insensitive to substantial forecast misspecification away from crossing points. The framework also yields scoring rules that are both proper and equitable for probabilistic forecasts with categorical outcomes. For single-valued and categorical forecasts, the crossing-point characterization shows that optimal forecasts can vary across climatologies even when the underlying predictive distribution is unchanged. Consequently, identical predictive distributions may lead to substantially different optimal forecasts under equitable scores, with important implications for assessing the suitability of such scores for any given application.
This paper evaluates how reward function choice shapes the performance and behavior of LLM forecasters. We compare five proper scoring rules as training objectives for binary forecasts of resolved real-world events. Although the rules share the same theoretical incentive for truthful probability reporting, the resultin...
Benjamin Turtel, Paul Wilczewski, Kris Skotheim et al.· 0 citations
This work characterize assignments that preserve association between specified population-rank contrasts, including forecast rank minus baseline rank compared with outcome rank minus baseline rank, including forecast rank minus baseline rank compared with outcome rank minus baseline rank.
Together, these results argue for evaluating financial forecasting models simultaneously on regression metrics, economic performance, and regime stability rather than on any single criterion.
E. Bastos, Roberto Ivo da Rocha Lima, L. Marujo· Mathematics· 0 citations
This study presents a robust machine learning framework for gold price direction prediction using non-overlapping time-series data and walk-forward validation. Unlike prior studies that report overly optimistic results due to temporal leakage and overlapping samples, this work ensures a realistic evaluation by construc...
F. Dael· Sakarya University Journal o...· 0 citations
Credit-scoring systems must translate predictive risk into calibrated, uncertainty-aware, and governable decisions rather than ranking applicants alone. This study aims to develop and evaluate a governed credit-scoring architecture integrating predictive performance, probability quality, uncertainty, and governance wit...
Nasser Khalili, Alireza Saleh Sedghpour, M. Jahanbakht et al.· Machine Learning and Knowled...· 0 citations