Study shows risk assessments often include error in logic
By Teresa Pitman
Wednesday, November 9, 2011
Imagine you are about to invest some money through a financial planner. How much faith should you have in your planner’s definition of risk? Or imagine you are making a decision about accepting a particular medical treatment. How should you make sense of the risks outlined by your doctor?
It may be more complex than you think, says sociology professor Patrick Parnaby. He’s been conducting research on the ways that financial planners communicate with their clients about risk, and now has a new study showing that physicians use similar approaches.