{"id":795,"date":"2016-07-14T19:59:48","date_gmt":"2016-07-15T00:59:48","guid":{"rendered":"http:\/\/blogs.acu.edu\/ryanjessup\/?page_id=795"},"modified":"2016-08-04T12:00:16","modified_gmt":"2016-08-04T17:00:16","slug":"stochastic-dominance-explanation","status":"publish","type":"page","link":"https:\/\/blogs.acu.edu\/rkj95n\/stochastic-dominance-explanation\/","title":{"rendered":"Stochastic Dominance Explanation"},"content":{"rendered":"<p>Option <em>A<\/em> is said to stochastically dominate option <em>B<\/em>\u00a0when, for any given probability\u00a0of events,\u00a0option <em>A<\/em> never yields less (e.g., money, or pleasure, or utility) and sometimes yields more. \u00a0For example, suppose I possess a two-sided coin and am about to flip it. \u00a0But before I do, I tell you that if you call out <em>heads<\/em> and you are\u00a0correct I will\u00a0pay you $10 and if you call out <em>tails<\/em> and you are\u00a0correct then I will pay you $5. \u00a0If you are wrong I will pay you\u00a0nothing. \u00a0In this case,\u00a0choosing <em>heads<\/em> stochastically dominates <em>tails<\/em> because the probability of winning $0 is 0.50 for both options but for the other event (a correct choice), choosing <em>heads<\/em> pays more than choosing <em>tails<\/em>.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h6>&lt; <a href=\"reflection-on-areas-of-contribution\/\">Reflection on Areas of Contribution<\/a>\u00a0| Stochastic Dominance Explanation\u00a0&gt;<\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Option A is said to stochastically dominate option B\u00a0when, for any given probability\u00a0of events,\u00a0option A never yields less (e.g., money, or pleasure, or utility) and sometimes yields more. \u00a0For example, suppose I possess a two-sided coin and am about to flip it. \u00a0But before I do, I tell you that if you call out heads &hellip; <a href=\"https:\/\/blogs.acu.edu\/rkj95n\/stochastic-dominance-explanation\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":7493,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-795","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/pages\/795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/users\/7493"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/comments?post=795"}],"version-history":[{"count":1,"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/pages\/795\/revisions"}],"predecessor-version":[{"id":1131,"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/pages\/795\/revisions\/1131"}],"wp:attachment":[{"href":"https:\/\/blogs.acu.edu\/rkj95n\/wp-json\/wp\/v2\/media?parent=795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}