stochastic dominance
Stochastic dominance refers to the use of historical empirical data to support future projections in terms of probability. It is a form of stochastic ordering.
Additional Information
Stochastic dominance refers to one data set's dominance over another relative to the value of the outcomes. For example, when comparing the relative value of two investments (asset A and asset B), the one whose probable rate of return exceeds the other, at any level, is stochastically dominant.
