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We provide a new characterization of second-order stochastic dominance, also known as increasing concave order. The result has an intuitive interpretation that adding a risk with negative expected value in adverse scenarios makes the…

Risk Management · Quantitative Finance 2024-09-30 Yuanying Guan , Muqiao Huang , Ruodu Wang

In this paper we provide a novel family of stochastic orders that generalizes second order stochastic dominance, which we call the $\alpha,[a,b]$-concave stochastic orders. These stochastic orders are generated by a novel set of "very"…

Probability · Mathematics 2021-04-28 Bar Light , Andres Perlroth

In this manuscript, we study stochastic comparisons of the second-order statistics from dependent or independent observations with modified proportional hazard rates models. First, we establish the usual stochastic order of the second-order…

Statistics Theory · Mathematics 2022-01-06 Niu Jiale

We investigate stochastic comparisons between exponential family distributions and their mixtures with respect to the usual stochastic order, the hazard rate order, the reversed hazard rate order, and the likelihood ratio order. A general…

Statistics Theory · Mathematics 2009-10-05 Yaming Yu

We show that the shape hypothesis on a likelihood ratio can be weakened while retaining endpoint criteria for the hazard-rate and usual stochastic orders. The endpoint reduction persists under unimodality of the likelihood ratio and under a…

Statistics Theory · Mathematics 2026-05-13 Z. Derbazi

We study a generalized family of stochastic orders, semiparametrized by a distortion function H, namely H-distorted stochastic dominance, which may determine a continuum of dominance relations from the first- to the second-order stochastic…

Statistics Theory · Mathematics 2019-09-12 Tommaso Lando , Lucio Bertoli-Barsotti

In this paper, we introduce the rich classes of conditional distortion (CoD) risk measures and distortion risk contribution ($\Delta$CoD) measures as measures of systemic risk and analyze their properties and representations. The classes…

Risk Management · Quantitative Finance 2019-01-29 Jan Dhaene , Roger J. A. Laeven , Yiying Zhang

The paper presents some distributional properties of logistic order statistics subject to independent exponential one-sided and two-sided shifts. Utilizing these properties, we extend several known results and obtain some new…

Probability · Mathematics 2011-12-20 M. Ahsanullah , George P. Yanev , Constantin Onica

This paper generalizes the notion of stochastic order to a relation between probability measures over arbitrary measurable spaces. This generalization is motivated by the observation that for the stochastic ordering of two stationary Markov…

Probability · Mathematics 2008-06-24 Lasse Leskelä

This paper deals with shape optimization for elastic materials under stochastic loads. It transfers the paradigm of stochastic dominance, which allows for flexible risk aversion via comparison with benchmark random variables, from…

Numerical Analysis · Mathematics 2016-07-01 Sergio Conti , Martin Rumpf , Rüdiger Schultz , Sascha Tölkes

Stochastic ordering among distributions has been considered in a variety of scenarios. Economic studies often involve research about the ordering of investment strategies or social welfare. However, as noted in the literature, stochastic…

Most of the stochastic orders for comparing random variables, considered in the literature, are afflicted with two main drawbacks: (i) lack of connex property and (ii) lack of consideration of any dependence structure between the random…

Methodology · Statistics 2021-03-03 Sugata Ghosh , Asok K. Nanda

Higher order risk measures are stochastic optimization problems by design, and for this reason they enjoy valuable properties in optimization under uncertainties. They nicely integrate with stochastic optimization problems, as has been…

Risk Management · Quantitative Finance 2024-02-26 Alois Pichler

The family of multivariate skew-normal distributions has many interesting properties. It is shown here that these hold for a general class of skew-elliptical distributions. For this class, several stochastic representations are established…

Statistics Theory · Mathematics 2023-09-18 Chuancun Yin , Narayanaswamy Balakrishnan

In this paper, we consider finite mixture models with modified proportional hazard rates. Sufficient conditions for the usual stochastic order and the hazard order are established under chain majorization. We study stochastic comparisons…

Statistics Theory · Mathematics 2024-07-24 Lina Guo

A class of probability distributions is characterized via equalities in law between two order statistics shifted by independent exponential variables. An explicit formula for the quintile function of the identified family of distributions…

Probability · Mathematics 2011-07-26 M. Ahsanullah , V. B. Nevzorov , George P. Yanev

In this communication, we introduce a new statistical model and study its various mathematical properties. The expressions for hazard rate, reversed hazard rate, and odd functions are provided. We explore the asymptotic behaviors of the…

Methodology · Statistics 2023-04-24 Tuhin Subhra Mahatao , Subhankar Dutta , Suchandan Kayal

The proportional odds model gives a method of generating new family of distributions by adding a parameter, called tilt parameter, to expand an existing family of distributions. The new family of distributions so obtained is known as…

Statistics Theory · Mathematics 2020-07-28 Pradip Kundu , Asok K. Nanda

The concept of "stochastic precedence" between two real-valued random variables has often emerged in different applied frameworks. In this paper we consider a slightly more general, and completely natural, concept of stochastic precedence…

Probability · Mathematics 2015-06-17 Emilio De Santis , Fabio Fantozzi , Fabio Spizzichino

We introduce a comprehensive method for establishing stochastic orders among order statistics in the i.i.d. case. This approach relies on the assumption that the underlying distribution is linked to a reference distribution through a…

Methodology · Statistics 2024-11-22 Tommaso Lando Idir Arab , Paulo Eduardo Oliveira
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