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Alpha-Transformation Compositional Data Analysis for Mortality Forecasting

Using the alpha-transformation, a one-parameter generalization of log-ratio transformations, in place of the centred log-ratio transformation to map compositional life-table death counts out of the Aitchison simplex within a non-functional compositional-data-analysis mortality model. Age patterns and a time index are estimated and the index is projected with ARIMA; the alpha-transformation adds flexibility and can handle zero counts directly.

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APPLICATION NOTE Compositional data analysis for modelling and forecasting mortality using the

This application note evaluates the alpha-transformation, a one-parameter generalization of log-ratio transformations, as a way to map compositional mortality data out of the Aitchison simplex before…