Question
According to the first order stochastic dominance (FOSD) theorem, investment alternative f dominates investment alternative g if the cumulative distribution function (CDF) of f is
According to the first order stochastic dominance (FOSD) theorem, investment alternative f dominates investment alternative g if the cumulative distribution function (CDF) of f is to the right of the CDF of g. Draw the two CDFs and explain why f should dominate g?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
