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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 is to gain more knowledge and understanding of the specific area. This will clear the fog, often revealing a gentle passage.
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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...
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Most people deal with uncertainty by only doing things others have don...
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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...
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People often confuse risk with uncertainty. But the terms "risk" and "uncertainty" do not refer to the same thing.
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