Nested Effects Models (NEMs) are a class of graphical models introduced to
analyze the results of gene perturbation screens. NEMs explore noisy subset
relations between the high-dimensional outputs of phenotyping studies, e.g. the
effects showing in gene expression profiles or as morphological features of the
perturbed cell.
In this paper we expand the statistical basis of NEMs in four directions:
First, we derive a new formula for the likelihood function of a NEM, which
generalizes previous results for binary data. Second, we prove model
identifiability under mild assumptions. Third, we show that the new formulation
of the likelihood allows to efficiently traverse model space. Fourth, we
incorporate prior knowledge and an automated variable selection criterion to
decrease the influence of noise in the data