Risks Ordering and Reliability of Some Applied Probability Systems

Ekaterina Bulinskaya
Risk management or decision making under uncertainty is an important research direction. For optimization of applied probability systems performance one needs an appropriate mathematical model. Discrete-time models became popular during the last decade not only because they can be used for approximation of the corresponding continuous-time ones. In many practical situations discrete-time models describe more precisely the real system functioning. We focus below on the so-called dual models taking the system reliability as criterium of its performance quality. In order to compare the models we study the influence of stochastic ordering of risks on systems reliability.