assd.ll.test: Compares random prospects by ASSD-LL

In RSD: Compares Random Distributions using Stochastic Dominance

Compares random prospects by ASSD-LL

Description

It uses the positive and negative areas that are computed by ASSD-LL and the expected values of the prospects to compare them based on the ASSD-LL rule. If the violation area ratio is less than 0.5 for a prospect, and its expected value is larger, it dominates the other by ASSD-LL.

Usage

assd.ll.test(sd.obj)

Arguments

sd.obj

StochasticDominance object.

Details

epsilon shows the ratio of the violation. Smaller epsilon means more decision-makers agree with the result.

The returned list has six elements: 'winner' indicates the dominant prospect index. It will be zero if neither dominates the other. 'epsilon' is the ratio of violated area to the total area between the CDFs. 'area' is a vector, where the values show the area between the CDFs correspond to each segment. 'total.area' is the total area between the CDFs. 'positive.area' is the amount of area where the 'area' vector is positive, meaning the 'cdf1' is larger than 'cdf2' and 'ssd1' is larger than 'ssd2'. 'negative.area' is like 'positive.area' for negative values.

If neither distribution dominates the other by ASSD-LL, the 'winner' output will be zero, and it happens only when the distribution with a higher expected value has the 'epsilon' which is larger than 0.5.

Value

A list, including all the calculation details.

See Also

[expected.values(), pos.neg.area.assd.ll(), afsd.test()] for more details.

RSD documentation built on June 21, 2025, 5:09 p.m.