01:220:395 Lecture Notes - Lecture 19: Daniel Kahneman, Standard Deviation
2 May 2016
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Plaintiff must also prove fault (breach of duty) in addition to harm and cause. Requires breach of duty by the defendant to establish liability. The defendant escapes liability if he satisfies a standard of care to avoid the harm he has caused. Determines rational behavior by the defendant and plaintiff to avoid breach of duty . When confronted with gambles with different expected values, they prefer a gamble with more certain outcome to one with a less certain outcome. When confronted with gambles with different expected values, they prefer a gamble with a less certain outcome. Most people cannot accurately measure low prob events exaggerate the prob of major accidents occurring ex. Risk information that will dispel uncertainty hazard or chance of lost. Probability likelihood or chance that something will happen. Standard deviation of a prob the most frequently used method for dispersion in a probability distribution (a measure of risk) a large standard deviation tend to mean greater risk.
