Stochastic Dominance
Stochastic dominance is a stochastic ordering used in decision theory. Several "orders" of stochastic dominance are defined.
- Zeroth order stochastic dominance consists of simple inequality: if for all states of nature.
- First order stochastic dominance is equivalent to the usual stochastic order above.
- Higher order stochastic dominance is defined in terms of integrals of the distribution function.
- Lower order stochastic dominance implies higher order stochastic dominance.
Read more about this topic: Stochastic Ordering
Famous quotes containing the word dominance:
“Imperialism is capitalism at that stage of development at which the dominance of monopolies and finance capitalism is established; in which the export of capital has acquired pronounced importance; in which the division of the world among the international trusts has begun, in which the division of all territories of the globe among the biggest capitalist powers has been completed.”
—Vladimir Ilyich Lenin (1870–1924)