On some methods for assessing earthquake predictions

A regional approach to the problem of assessing earthquake predictions inevitably faces a deficit of data. We point out some basic limits of assessment methods reported in the literature, considering the practical case of the performance of the CN pattern recognition method in the prediction of large Italian earthquakes. Along with the classical hypothesis testing, a new game approach, the so-called parimutuel gambling (PG) method, is examined. The PG, originally proposed for the evaluation of the probabilistic earthquake forecast, has been recently adapted for the case of 'alarm-based' CN prediction. The PG approach is a non-standard method; therefore it deserves careful examination and theoretical analysis. We show that the PG alarmbased version leads to an almost complete loss of information about predicted earthquakes (even for a large sample). As a result, any conclusions based on the alarm-based PG approach are not to be trusted. We also show that the original probabilistic PG approach does not necessarily identifies the genuine forecast correctly among competing seismicity rate models, even when applied to extensive data.