• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Chapter 3 - Practice Questions

B

Bernadette Pieterse

Active Member
Q3.2
I understand the concepts of first and second order dominance, but I don't understand what they are doing in these two questions, especially why they factorize and then conclude that it is true?
Can someone please explain the memo?
Thanks
:)
 
Because first and second order dominance means that the CDF (for first order) or its integral (for second order) of one function is always equal to or greater than the other function. So what they do is subtract Function B from Function A, and then prove that for all values within the given range, this difference is always non-positive (if there was a positive value for any value of w between 0 to 1 inclusive, then that order of dominance does not hold). By factorizing Function B out, it makes it easier to show the part of Function A is indeed smaller then or equal to one, and hence the inequality holds true for all w within the range.
 
You must log in or register to reply here.
Back
Top