How to Explain the Definition of Stochastic Affiliation to Economics Students

Authors

Tonghui Wang, New Mexico State University - Main CampusFollow
Olga Kosheleva, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

6-2014

Comments

Technical Report: UTEP-CS-14-46

To appear in Journal of Uncertain Systems, 2015, Vol. 9.

Abstract

To formally describe the intuitive idea of "positive correlation" between two quantities, it is often helpful to use the notion of stochastic affiliation. While this notion is useful, its usual definition is not intuitively clear -- which make it difficult to explain this notion to, e.g., economics students. To help students understand this notion, in this paper, we show how the notion of stochastic affiliation can be explained in clear probabilistic terms.