free_LUNCH » Personal Stake http://www.vibhavagarwal.com/blog a BLOG by vibhav agarwal Thu, 14 Apr 2011 02:49:04 +0000 en hourly 1 http://wordpress.org/?v=3.1.1 Risk vs. Uncertainty http://www.vibhavagarwal.com/blog/2010/01/14/risk-vs-uncertainty/ http://www.vibhavagarwal.com/blog/2010/01/14/risk-vs-uncertainty/#comments Thu, 14 Jan 2010 05:35:35 +0000 Vibhav Agarwal http://www.vibhavagarwal.com/blog/2010/01/14/risk-vs-uncertainty/

 

All “risks” have some “uncertainties”, but not the other way around. A good example from Wikipedia is:

We can be uncertain about the winner of a contest, but unless we have some personal stake in it, we have no risk. If we bet money on the outcome of the contest, then we have a risk. In both cases there are more than one outcome.

]]> http://www.vibhavagarwal.com/blog/2010/01/14/risk-vs-uncertainty/feed/ 0