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Most people deal with uncertainty by only doing things others have done in the past. But this tends to restrict people by repeating experiences they've had or knowing the experiences of others. This can create a trap where you avoid good opportunities just because nobody has tried them.
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People often confuse risk with uncertainty. But the terms "risk" and "uncertainty" do not refer to the same thing.
Once you understand a system, you can change some risk into uncertainty. Sometimes you can do this completely, but other times you can limit your range of uncertainties to a calculable level.
More knowledge allows you more controlled risk. However, sometimes, peopl...
Uncertainty hides the risks of our decisions. This makes us tread very carefully. But, in reality, most of the decision terrain isn't nearly so dangerous. Things that look risky often aren't, and things that look routine and safe, often are.
The solution i...
The prospect theory shows that people are often willing to make riskier decisions to avoid losses than to make gains - even when the situation is identical but framed differently. For example, a 30% chance of death and a 70% chance o...
"An investment in knowledge always pays the best interest." - Benjamin Franklin
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