The Relevancy of Non-Normal Risk

Paul N. Wilson

No 257671, Working Papers from University of Arizona, Department of Agricultural and Resource Economics

Abstract: 'Ihe argument that a normal distribution of a performance indicator may be an inadequate approximation of the true distribution is examined in this paper. Simulated normal and beta distributions of net return for 1,181 swine operations are compared using a Kolmogorov-Simirnov test and stochastic dominance techniques. Results show that for this data set the differences between the simulations are not statistically significant nor does stochastic dominance switching take place. Although the normal distribution represents an acceptable approximation, the added flexibil­ity of the beta distribution may prove more useful in future research.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 15
Date: 1983-05-31
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/257671/files/arizona%20wp%2016.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:usazwp:257671

DOI: 10.22004/ag.econ.257671

Access Statistics for this paper

More papers in Working Papers from University of Arizona, Department of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().