- Difference between risk and uncertainty by Knight There is a black-and-white ball in a jar, and the white one is a success.
- Known distribution: risk: analysis required, classical statistics
- Unknown distribution: Uncertainty: estimation procedures required, e.g. Bayesian estimation
- I don’t understand the principle itself: Knight’s uncertainty: the methodology for this is effectuation.
- p.31-35
On the counterpart of analysis and estimation
- If the distribution is known in a mathematical sense, the expected value is also known, without the need for statistical analysis.
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