arXiv AI By Dae Woong (David), Ham, Xuejun Zhao, Stefanus Jasin, Fenghua Yang

Human-AI-Powered Hypothesis Testing: Cost-Aware Selective AI Scoring and Sequential Human Escalation

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The paper introduces a framework for hypothesis testing that combines inexpensive AI judgments with selective human verification to control type‑I and type‑II errors while minimizing cost. It derives an information‑theoretic lower bound on the minimum cost and proposes the SCALE policy, a sequential, cost‑aware strategy that adapts AI scoring and human escalation. SCALE is proven valid for finite samples and asymptotically matches the lower bound, achieving significant savings when both AI and human inputs are valuable.

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