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Karhunen-Loève Basis In Goodness-Of-Fit Tests Decomposition: An Evaluation

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Author Info
Aurea Grane ()
Josep Fortiana ()
Abstract

In a previous paper (Grané and Fortiana 2006) we studied a flexible class of goodness-of-fit tests associated with an orthogonal sequence, the Karhunen-Loève decomposition of a stochastic process derived from the null hypothesis. Generally speaking, these tests outperform Kolmogorov-Smirnov and Cramér-von Mises, but we registered several exceptions. In this work we investigate the cause of these anomalies and, more precisely, whether and when such poor behaviour may be attributed to the orthogonal sequence itself, by replacing it with the Legendre polynomials, a commonly used basis for smooth tests. We find an easily computable formula for the Bahadur asymptotic relative efficiency, a helpful quantity in choosing an adequate basis.

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Paper provided by Universidad Carlos III, Departamento de Estadística y Econometría in its series Statistics and Econometrics Working Papers with number ws062710.

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Date of creation: Apr 2006
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Handle: RePEc:cte:wsrepe:ws062710

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  1. J. Fortiana & A. Grané, 2003. "Goodness-of-fit tests based on maximum correlations and their orthogonal decompositions," Journal Of The Royal Statistical Society Series B, Royal Statistical Society, vol. 65(1), pages 115-126. [Downloadable!] (restricted)
  2. Cuadras, C. M. & Fortiana, J., 1995. "A Continuous Metric Scaling Solution for a Random Variable," Journal of Multivariate Analysis, Elsevier, vol. 52(1), pages 1-14, January. [Downloadable!] (restricted)
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