Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, physics, statistics, economics, finance, insurance, psychology, sociology, engineering, and information science. It applies to predictions of future events, to physical measurements already made, or to the unknown.
In his seminal work Risk, Uncertainty, and Profit University of Chicago economist Frank Knight (1921) established the important distinctio...
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Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, physics, statistics, economics, finance, insurance, psychology, sociology, engineering, and information science. It applies to predictions of future events, to physical measurements already made, or to the unknown.
In his seminal work Risk, Uncertainty, and Profit University of Chicago economist Frank Knight (1921) established the important distinction between risk and uncertainty:
Although the terms are used in various ways among the general public, many specialists in decision theory, statistics and other quantitative fields have defined uncertainty and risk more specifically. Doug Hubbard defines uncertainty and risk as:
There are other taxonomies of uncertainties and decisions that include a broader sense of uncertainty and how it should be approached from an ethics perspective :
For example, if you do not know whether it will rain tomorrow, then you have a state of uncertainty. If you...
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