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I would think that you could have "uncertainty" even if you do have a PDF. Maybe there is a formal definition of uncertainty that I am not aware of. The PDF can
by mateo411 5y ago
I would think that you could have "uncertainty" even if you do have a PDF. Maybe there is a formal definition of uncertainty that I am not aware of. The PDF can describe the uncertainty for every outcome.
- nanis 5y agoRisk is what you can put a probability on (i.e., quantify). Uncertainty is what you can't. Uncertainty encompasses unknown unknowns. See Knight[1] and Keynes[2]. Good rule of thumb even if it sounds overly simplified. [1]: https://www.econlib.org/library/Knight/knRUP.html https://www.econlib.org/library/Knight/knRUP.html [2]: https://www.jstor.org/stable/4538116 https://www.jstor.org/stable/4538116