assd.ths.test: Compares random prospects by ASSD-THS

In RSD: Compares Random Distributions using Stochastic Dominance

Compares random prospects by ASSD-THS

Description

It uses the areas between the SSD functions, and the expected values of the prospects to compare them based on the ASSD-THS 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-THS.

Usage

assd.ths.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 SSDs. 'area' is a vector, where the values show the area between the SSDs correspond to each segment. 'total.area' is the total area between the SSDs. 'positive.area' is the amount of area where the 'area' vector is positive, meaning the 'ssd1' is larger than 'ssds2'. 'negative.area' is like 'positive.area' for negative values.

If neither distribution dominates the other by ASSD-THS, 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(), area.btwn.ssd.calc()] for more details.

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