VoseDominance

See also: Vose Stochastic Dominance window

VoseDominance({data},{TitleArray},DataInRows)

Example model

This function Determines a matrix of first and second order stochastic dominance between variables.

• {data} - array of spreadsheet data to be analyzed.

• {TitleArray} - optional array of labels associated with each variable.

• DataInRows - optional boolean (TRUE/FALSE) parameter. If set to FALSE (default)the parameters are supposed to be arranged in two collumns. If TRUE, the parameters are supposed to be arranged in rows.

Also see the Vose Stochastic Dominance window.

For example, let's say we have 1000 datapoints for 2 certain options where we want to determine the superiority of one over the other. The VoseDominance function then looks at the cumulative distributions that can be constructed from these datapoints and then compares them.

If the cumulative distributions constructed from the datapoints look like this:

then the function returns that B is first order stochastic dominant over A.

If the cumulative graphs look like this:

then the function returns that B is second order stochastic dominant over A if the area X is bigger than the area Y.

If this is not the case, the function returns "Inconclusive".