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Essay text:
The first example we will use is of a
person who spends his life savings on a lottery ticket and does not win
the lottery. The second is of a person who spends his life savings on a
hunch regarding a cure for AIDS, a hunch that is false. Before we make
this distinction, however, it is necessary to define the terms acceptable
and unacceptable risks.
Acceptable and Unacceptable Risks
There are several ways in which one could define which risks are
acceptable. One could say, for example, that the only acceptable risk is
one for which the odds of success are greater than the odds of failure...
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