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Conformalized Regression for Continuous Bounded Outcomes

Published: July 18, 2025 | arXiv ID: 2507.14023v1

By: Zhanli Wu, Fabrizio Leisen, F. Javier Rubio

Potential Business Impact:

Gives more accurate predictions for rates and proportions.

Business Areas:
A/B Testing Data and Analytics

Regression problems with bounded continuous outcomes frequently arise in real-world statistical and machine learning applications, such as the analysis of rates and proportions. A central challenge in this setting is predicting a response associated with a new covariate value. Most of the existing statistical and machine learning literature has focused either on point prediction of bounded outcomes or on interval prediction based on asymptotic approximations. We develop conformal prediction intervals for bounded outcomes based on transformation models and beta regression. We introduce tailored non-conformity measures based on residuals that are aligned with the underlying models, and account for the inherent heteroscedasticity in regression settings with bounded outcomes. We present a theoretical result on asymptotic marginal and conditional validity in the context of full conformal prediction, which remains valid under model misspecification. For split conformal prediction, we provide an empirical coverage analysis based on a comprehensive simulation study. The simulation study demonstrates that both methods provide valid finite-sample predictive coverage, including settings with model misspecification. Finally, we demonstrate the practical performance of the proposed conformal prediction intervals on real data and compare them with bootstrap-based alternatives.

Country of Origin
🇬🇧 United Kingdom

Repos / Data Links

Page Count
27 pages

Category
Statistics:
Machine Learning (Stat)