Vendor Selection with Bundling: A Comment*

In a recent article by Rosenthal, Zydiak, and Chaudhry (1995), a mixed integer linear programming model was introduced to solve the vendor selection problem for the case in which the vendor can sell items individually or as part of a bundle. Each vendor offered only one type of bundle, and the buyer could purchase at most one bundle per vendor. The model employed n(m+ 1) binary variables, where n is the number of vendors and m is the number of products they sell. The existing model can lead to a purchasing paradox: it may force the buyer to pay more to receive less. We suggest a reformulation of the same problem that (i) eliminates this paradox and reveals a more cost-effective purchasing strategy; (ii) uses only n integer variables and significantly reduces the computational workload; and (iii) permits the buyer to purchase more than one bundle per vendor.     

Non-ignorable missing covariate data in survival analysis: a case-study of an International Breast Cancer Study Group trial

Summary.  Non-ignorable missing data, a serious problem in both clinical trials and observational studies, can lead to biased inferences. Quality-of-life measures have become increasingly popular in clinical trials. However, these measures are often incompletely observed, and investigators may suspect that missing quality-of-life data are likely to be non-ignorable. Although several recent references have addressed missing covariates in survival analysis, they all required the assumption that missingness is at random or that all covariates are discrete. We present a method for estimating the parameters in the Cox proportional hazards model when missing covariates may be non-ignorable and continuous or discrete. Our method is useful in reducing the bias and improving efficiency in the presence of missing data. The methodology clearly specifies assumptions about the missing data mechanism and, through sensitivity analysis, helps investigators to understand the potential effect of missing data on study results.     

Bayesian phylogenetic inference from animal mitochondrial genome arrangements

Summary. The determination of evolutionary relationships is a fundamental problem in evolutionary biology. Genome arrangement data are potentially more informative than deoxyribonucleic acid sequence data for inferring evolutionary relationships between distantly related taxa. We describe a Bayesian framework for phylogenetic inference from mitochondrial genome arrangement data using Markov chain Monte Carlo methods. We apply the method to assess evolutionary relationships between eight animal phyla.     

The rescission of behaviors: Inconsistent responses in adolescent sexuality data

In longitudinal survey research, certain questions can be rescinded illogically. For instance, respondents who at Time 1 report having had sexual intercourse may at Time 2 report never having done so. This paper reports measurement techniques and analyses of these types of inconsistencies from an ongoing longitudinal adolescent sexuality project. Inconsistencies in intercourse, masturbation, and other sexual behaviors are reported and compared to rates from other studies and other less sensitive behaviors within the same study. Three conclusions are presented: (1) inconsistencies should be considered a natural part of any longitudinal survey process and should be incorporated into the response model; (2) inconsistency rates in these particular data support the contention that adolescent sexuality data of appropriate quality for analytical purposes can be obtained; and (3) inconsistency rates in fact contain substantive information concerning the processes under consideration.     

Why a Bayesian approach to safety analysis in pharmacovigilance is important

Large databases of routinely collected data are a valuable source of information for detecting potential associations between drugs and adverse events (AE). A pharmacovigilance system starts with a scan of these databases for potential signals of drug-AE associations that will subsequently be examined by experts to aid in regulatory decision-making. The signal generation process faces some key challenges: (1) an enormous volume of drug-AE combinations need to be tested (i.e. the problem of multiple testing); (2) the results are not in a format that allows the incorporation of accumulated experience and knowledge for future signal generation; and (3) the signal generation process ignores information captured from other processes in the pharmacovigilance system and does not allow feedback. Bayesian methods have been developed for signal generation in pharmacovigilance, although the full potential of these methods has not been realised. For instance, Bayesian hierarchical models will allow the incorporation of established medical and epidemiological knowledge into the priors for each drug-AE combination. Moreover, the outputs from this analysis can be incorporated into decision-making tools to help in signal validation and posterior actions to be taken by the regulators and companies. We discuss in this paper the apparent advantage of the Bayesian methods used in safety signal generation and the similarities and differences between the two widely used Bayesian methods. We will also propose the use of Bayesian hierarchical models to address the three key challenges and discuss the reasons why Bayesian methodology still have not been fully utilised in pharmacovigilance activities.     

Bayesian local influence for survival models

The aim of this paper is to develop a Bayesian local influence method (Zhu et al. 2009, submitted) for assessing minor perturbations to the prior, the sampling distribution, and individual observations in survival analysis. We introduce a perturbation model to characterize simultaneous (or individual) perturbations to the data, the prior distribution, and the sampling distribution. We construct a Bayesian perturbation manifold to the perturbation model and calculate its associated geometric quantities including the metric tensor to characterize the intrinsic structure of the perturbation model (or perturbation scheme). We develop local influence measures based on several objective functions to quantify the degree of various perturbations to statistical models. We carry out several simulation studies and analyze two real data sets to illustrate our Bayesian local influence method in detecting influential observations, and for characterizing the sensitivity to the prior distribution and hazard function.     

HOW WELL DO SELECTION MODELS PERFORM? ASSESSING THE ACURACY OF ART AUCTION PRE-SALE ESTIMATES

Art auction catalogs provide a pre-sale prediction interval for the price each item is expected to fetch. When the owner consigns art work to the auction house, a reserve price is agreed upon, which is not announced to the bidders. If the highest bid does not reach it, the item is brought in. Since only the prices of the sold items are published, analysts only have a biased sample to examine due to the selective sale process. Relying on the published data leads to underestimating the forecast error of the pre-sale estimates. However, we were able to obtain several art auction catalogs with the highest bids for the unsold items as well as those of the sold items. With these data we were able to evaluate the accuracy of the predictions of the sale prices or highest bids for all item obtained from the original Heckman selection model that assumed normal error distributions as well as those derived from an alternative model using the t(2) distribution, which yielded a noticeably better fit to several sets of auction data. The measures of prediction accuracy are of more than academic interest as they are used by auction participants to guide their bidding or selling strategy, and similar appraisals are accepted by the US Internal Revenue Services to justify the deductions for charitable contributions donors make on their tax returns.     

An alternate version of the conceptual predictive statistic based on a symmetrized discrepancy measure

The conceptual predictive statistic, C_p, is a widely used criterion for model selection in linear regression. C_p serves as an estimator of a discrepancy, a measure that reflects the disparity between the generating model and a fitted candidate model. This discrepancy, based on scaled squared error loss, is asymmetric: an alternate measure is obtained by reversing the roles of the two models in the definition of the measure. We propose a variant of the C_p statistic based on estimating a symmetrized version of the discrepancy targeted by C_p. We claim that the resulting criterion provides better protection against overfitting than C_p, since the symmetric discrepancy is more sensitive towards detecting overspecification than its asymmetric counterpart. We illustrate our claim by presenting simulation results. Finally, we demonstrate the practical utility of the new criterion by discussing a modeling application based on data collected in a cardiac rehabilitation program at University of Iowa Hospitals and Clinics.