yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

What Does a 30% Chance of Rain Mean? (Understanding Risk, with Gerd Gigerenzer) | Big Think


2m read
·Nov 4, 2024

Processing might take a few minutes. Refresh later.

In the good old times, people learned how to read and to write. That's no longer sufficient in the high-tech twenty-first century. We also need to know how to deal with risk and uncertainty. And that is what I mean with risk savvy.

Here is a simple example. You hear on the weather report that there is a 30 percent chance of rain tomorrow. Thirty percent chance of what? Now I live in Berlin, and most Berliners believe that it means that it will rain in 30 percent of the time, that is, seven to eight hours. Others think it will rain in 30 percent of the region. Most New Yorkers believe that's all nonsense. It means it will rain on 30 percent of the days for which this prediction has been made; that is, most likely not at all.

Many psychologists think that people can't learn how to deal with risk, but in this case, it's the experts, the meteorologists, who have not learned how to communicate risk in an instinctive way; that is to say, to what class 30 percent refers. Time or region or days? And if you have some imagination, you can think about other classes. For instance, one woman in New York said, "I know what 30 percent means. Three meteorologists think it rains and seven not."

Now getting soaked is a minor risk. But are we risk savvy when it comes to more important things? For instance, 20-year-olds drive with their cell phone glued to their ears, not realizing that they decrease their reaction time to that of a 70-year-old. Or many Americans, about 20 percent, believe that they are in the top one percent income group. And as many believe they will soon be there.

Or take health. So about an estimated one million children get every year unnecessary computer tomography (CT) scans. And that's really because they're not really clinically indicated. Which is not just a waste of time but also a danger to the kids because a CT scan can have the radiation of a hundred chest X-rays and may lead, in a small number of these kids, later to cancer.

We deal every day with risks, but we haven't learned how to understand them. And the problem is not simply in the human mind, but also in experts who really don't know what the risks are or don't know how to communicate. Or in other areas, like if it's about finance or health, have interests other than yours.

So the key message is this: Everyone can learn to deal with risk. In that case, everyone can learn to ask the question, "Probability of what?" And second, if you believe that you're safe by delegating the responsibility of your wellness and health to experts, then you may be disappointed because many experts do not know how to communicate probabilities or try to protect themselves against you, as in health care, as a potential plaintiff.

So you have to think for yourself. And that's the key message...

More Articles

View All
What Actually Happens When You Are Sick?
There is this idea floating around that what doesn’t kill you makes you stronger. That surviving a disease leaves you better off. And it seems to make sense because we have all experienced this. When you go through hardship, often you come out more resili…
The BETTER Way You Should Use NFTs | Converge 2022
Foreign [Music] [Applause] [Music] O’Leary, Mr. Wonderful, we’re here in San Francisco at Converge, our first crypto ecosystem conference. Thousands of people are here. It’s a great setting, and it’s just wonderful to have you here with us for this conver…
The truth behind jet lag...
The thing that everybody thinks is jet lag. People think it’s because of the time zone change; it really is not the time zone change. It’s the cabin altitude of the plane. If you ever go skiing and you go to a place that’s at 2500 or 3,000 M, and the fir…
China is Uninvestable.
Stocks based in the world’s second largest economy are uninvestable again. Bernstein sales trading desk’s Mark Schilsky said in a note on Monday, “This idea of Chinese stocks being uninvestable has been a recurring theme in the media over the past few wee…
Bitcoin: The Currency of The Internet
Over time, things tend to change a lot. Earth was once devoid of life, and then one day, it wasn’t. Horses used to be a normal form of transportation. Fast forward a hundred years, and we now have half a million pounds of metal to sit in as we soar 400 mi…
Local taxes | Taxes and tax forms | Financial Literacy | Khan Academy
When you look around your town, you’ll see a lot of services for you and other people in your town, and you might wonder who pays for it all. For example, in this picture, which I actually generated with AI—very exciting—you see all sorts of local service…