Decomposition and Model Selection for Large Contingency Tables

Large contingency tables summarizing categorical variables arise in many areas. One example is in biology, where large numbers of biomarkers are cross‐tabulated according to their discrete expression level. Interactions of the variables are of great interest and are generally studied with log–linear models. The structure of a log–linear model can be visually represented by a graph from which the conditional independence structure can then be easily read off. However, since the number of parameters in a saturated model grows exponentially in the number of variables, this generally comes with a heavy computational burden. Even if we restrict ourselves to models of lower‐order interactions or other sparse structures, we are faced with the problem of a large number of cells which play the role of sample size. This is in sharp contrast to high‐dimensional regression or classification procedures because, in addition to a high‐dimensional parameter, we also have to deal with the analogue of a huge sample size. Furthermore, high‐dimensional tables naturally feature a large number of sampling zeros which often leads to the nonexistence of the maximum likelihood estimate. We therefore present a decomposition approach, where we first divide the problem into several lower‐dimensional problems and then combine these to form a global solution. Our methodology is computationally feasible for log–linear interaction models with many categorical variables each or some of them having many levels. We demonstrate the proposed method on simulated data and apply it to a bio‐medical problem in cancer research.