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Conservative Hypothesis Tests and Confidence Intervals using Importance Sampling

16 April 2010
M. Harrison
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Abstract

Importance sampling is a common technique for Monte Carlo approximation, including Monte Carlo approximation of p-values. Here it is shown that a simple correction of the usual importance sampling p-values creates valid p-values, meaning that a hypothesis test created by rejecting the null when the p-value is <= alpha will also have a type I error rate <= alpha. This correction uses the importance weight of the original observation, which gives valuable diagnostic information under the null hypothesis. Using the corrected p-values can be crucial for multiple testing and also in problems where evaluating the accuracy of importance sampling approximations is difficult. Inverting the corrected p-values provides a useful way to create Monte Carlo confidence intervals that maintain the nominal significance level and use only a single Monte Carlo sample. Several applications are described, including accelerated multiple testing for a large neurophysiological dataset and exact conditional inference for a logistic regression model with nuisance parameters.

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