In practice, people tend to accept too many large risks (such as forgoing life insurance)and avoid too many small risks (such as losing or breaking a cell phone).

Question

Quizplus · Accepted Answer

This phenomenon is often referred to as risk perception bias, where people overestimate the likelihood of rare, catastrophic events and underestimate the likelihood of more frequent, minor events. This can lead to irrational decision making and failure to mitigate risks effectively.

In Practice, People Tend to Accept Too Many Large Risks