What do probability and odds tell you about life’s risks?

Question

lovelyharmonics · Answer

this would be a question to post under the subject of stats, that will give you more defined answers

anonymous · Answer

Probability and odds tell you the bigger the risk, the bigger the reward.

anonymous · Answer

I don't know what approach is being discussed where you are studying. In one of the commonest information  theory approaches there is a probability associated with each possible event and a cost or loss associated with each event. The risk associated with any given event is taken to be the product of the probability and the loss for that even.

So, if an event carries a high loss but is extremely unlikely to occur then the risk associated with it would be small. For example, a volcano _might_ erupt in one of our farm's back fields but the changes are about one in a billion. So the risk is miniscule.

anonymous · Answer

thank you!!

anonymous · Answer

welcome!