Question: 2. (15 points) We consider two distributions F() and G() over [0, 1]. Suppose that F(.) Second Order Stochastically Dominate G(.). Provide a formal definition
2. (15 points) We consider two distributions F() and G() over [0, 1]. Suppose that F(.) Second Order Stochastically Dominate G(.). Provide a formal definition for Second Oder Stochastic Dominance. Show that, if F second order stochastically dominates G, then for any increasing and concave utility function v(.), (i.e., v 0 > 0 and v 00 < 0) EF (v) > EG(v) where EF (v) is the expectation of v calculated under the distribution function F
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