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Archive for the ‘Uncertainties’ tag

Risk vs. Uncertainty

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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.

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Written by Vibhav Agarwal

January 14th, 2010 at 12:35 am