The random variable X is said to be more variable than Y if E[f(X)] ≥ E[f(Y)] for all increasing convex functions f. We prove a preservation property of this ordering under random sized sums, and then apply it to branching processes and shock models. We also give applications of this ordering to a population survival and to a Poisson shock model.
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Ross et al. (1984) studied this question.
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