fsd.test: Compares random prospects by FSD

In RSD: Compares Random Distributions using Stochastic Dominance

Compares random prospects by FSD

Description

It compares two random prospects by the first-order stochastic dominance (FSD).

Usage

fsd.test(sd.obj)

Arguments

sd.obj

StochasticDominance object.

Details

A prospect dominates when its CDF is below the other one. It means that all element of the CDF vector must be equal or smaller, and at least one element should be smaller for the dominant prospect.

If neither prospect dominates the other by FSD, it returns 0. It means that the CDFs intersect each other.

Value

An integer, indicating the index of the dominant prospect.

Examples

sd = createStochasticDominance(outcome1 = c(1,4,7),
                               outcome2 = c(2,3,5),
                               prob1 = c(1/3,1/3,1/3),
                               prob2 = c(1/6,1/6,2/3))
fsd.test(sd)

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