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Mean-preserving spread

Index Mean-preserving spread

In probability and statistics, a mean-preserving spread (MPS) is a change from one probability distribution A to another probability distribution B, where B is formed by spreading out one or more portions of A's probability density function or probability mass function while leaving the mean (the expected value) unchanged. [1]

15 relations: Cumulative distribution function, Expected utility hypothesis, Expected value, Google Books, Journal of Economic Theory, Partially ordered set, Probability and statistics, Probability density function, Probability distribution, Probability mass function, Risk, Statistical risk, Stochastic dominance, Stochastic ordering, The Review of Economic Studies.

Cumulative distribution function

In probability theory and statistics, the cumulative distribution function (CDF, also cumulative density function) of a real-valued random variable X, or just distribution function of X, evaluated at x, is the probability that X will take a value less than or equal to x. In the case of a continuous distribution, it gives the area under the probability density function from minus infinity to x. Cumulative distribution functions are also used to specify the distribution of multivariate random variables.

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Expected utility hypothesis

In economics, game theory, and decision theory the expected utility hypothesis, concerning people's preferences with regard to choices that have uncertain outcomes (gambles), states that if specific axioms are satisfied, the subjective value associated with an individual's gamble is the statistical expectation of that individual's valuations of the outcomes of that gamble.

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Expected value

In probability theory, the expected value of a random variable, intuitively, is the long-run average value of repetitions of the experiment it represents.

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Google Books

Google Books (previously known as Google Book Search and Google Print and by its codename Project Ocean) is a service from Google Inc. that searches the full text of books and magazines that Google has scanned, converted to text using optical character recognition (OCR), and stored in its digital database.

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Journal of Economic Theory

The Journal of Economic Theory, often referred to as JET, is an important scholarly journal in the field of economics.

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Partially ordered set

In mathematics, especially order theory, a partially ordered set (also poset) formalizes and generalizes the intuitive concept of an ordering, sequencing, or arrangement of the elements of a set.

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Probability and statistics

Probability and Statistics or also called Statistics and Probability are two related but separate academic disciplines.

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Probability density function

In probability theory, a probability density function (PDF), or density of a continuous random variable, is a function, whose value at any given sample (or point) in the sample space (the set of possible values taken by the random variable) can be interpreted as providing a relative likelihood that the value of the random variable would equal that sample.

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Probability distribution

In probability theory and statistics, a probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

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Probability mass function

In probability and statistics, a probability mass function (pmf) is a function that gives the probability that a discrete random variable is exactly equal to some value.

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Risk

Risk is the potential of gaining or losing something of value.

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Statistical risk

Statistical risk is a quantification of a situation's risk using statistical methods.

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Stochastic dominance

Stochastic dominance is a partial order between random variables.

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Stochastic ordering

In probability theory and statistics, a stochastic order quantifies the concept of one random variable being "bigger" than another.

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The Review of Economic Studies

The Review of Economic Studies (also known as RESTUD) is a quarterly peer-reviewed academic journal covering economics.

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Mean preserving spread, Mean-preserving contraction.

References

[1] https://en.wikipedia.org/wiki/Mean-preserving_spread

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