What Is the Problem with Being Swayed by a Good

question 28

Multiple Choice

What is the problem with being swayed by a good story?

• A)A good story is never the true explanation for a scientific finding.
• B)Scientific findings never have commonsense explanations.
• C)A good story may not be supported by data.
• D)Good stories are not falsifiable.

---

Definitions:

Diversification

Diversification is an investment strategy that involves spreading investments among various financial assets to reduce exposure to risk.

Expected Gain

The predicted benefit or profit derived from an investment or decision, based on probability calculations.

Pooling Risks

The practice of spreading financial risk among a large number of contributors to reduce the risk to individuals.

Insurance Company

A financial institution that offers policies to individuals or entities, offering protection from financial losses in exchange for premiums.