Extended Abstract. The simplest and the most common way of comparing two random variables is through their means and variances. It may happen that in some cases the median of X is larger than that of Y, while the mean of X is smaller than the mean of Y. However, this confusion will not arise if the random variables are stochastically ordered. Similarly, the same may happen if one would like to compare the variability of X with that of Y based only on numerical measures like standard deviation etc. Besides, these characteristics of distributions might not exist in some cases. In most cases one can express various forms of knowledge about the underlying distributions in terms of their survival functions, hazard rate functions, mean residual functions, quantile functions and other suitable functions of probability distributions. These methods are much more informative than those based only on few numerical characteristics of distributions. Comparisons of random variables based on such functions usually establish partial orders among them. We call them as stochastic orders.

Stochastic models are usually sufficiently ...[To continue click here]