Detecting association of rare and common variants based on cross‐validation prediction error

Despite the extensive discovery of disease‐associated common variants, much of the genetic contribution to complex traits remains unexplained. Rare variants may explain additional disease risk or trait variability. Although sequencing technology provides a supreme opportunity to investigate the roles of rare variants in complex diseases, detection of these variants in sequencing‐based association studies presents substantial challenges. In this article, we propose novel statistical tests to test the association between rare and common variants in a genomic region and a complex trait of interest based on cross‐validation prediction error (PE). We first propose a PE method based on Ridge regression. Based on PE, we also propose another two tests PE‐WS and PE‐TOW by testing a weighted combination of variants with two different weighting schemes. PE‐WS is the PE version of the test based on the weighted sum statistic (WS) and PE‐TOW is the PE version of the test based on the optimally weighted combination of variants (TOW). Using extensive simulation studies, we are able to show that (1) PE‐TOW and PE‐WS are consistently more powerful than TOW and WS, respectively, and (2) PE is the most powerful test when causal variants contain both common and rare variants.