Glossary

First-Order Stochastic Dominance (FSD)

A criterion where one cumulative loss distribution consistently lies below another, establishing an unambiguous risk ordering across all monotone loss functions.

Source: Ranking, Not Point Estimates: Risk Tiering and the Case for AI-Assisted Loss Data in Caribbean SIDS Credit (Academic research) · p.3

Have a question about First-Order Stochastic Dominance (FSD)? Ask the AI, answers cite the source.