Skip to main content

Are you an expert?

Are you an expert?

Do you have confidence in your ability to reasonably predict figures and outcomes when presented with new questions and problems, or are you (like most of us) overconfident in your ability to guess correctly?

Here's an interesting little quiz from FT.com that will help you find out.

But first, an explanation and some ground rules, taken from the quiz site:


The human mind tends to suffer from a number of well-documented cognitive failings and biases that distort our ability to predict accurately. We tend to give too much weight to unusual events that seem salient. And once we form a mistaken belief about something, we tend to cling to it. As new evidence arrives, we’re likely to discount contrary evidence and focus instead on evidence that supports our pre-existing beliefs.

In fact, it’s possible to test your own ability to make unbiased estimates. For each of the following 10 questions, give the range of answers that you are 90 per cent confident contains the correct answer. For example, for the first question, you are supposed to fill in the blanks: ”I am 90 per cent confident that Martin Luther King’s age at the time of his death was somewhere between ___ years and ___ years.” Don’t worry about not knowing the exact answer – and no using Google.

So now that you know what's in store, proceed on to the quiz.

When you finish, you'll find an answer key link to these 10 questions. Have fun, and feel free to share your results in the comments section (but please don't reveal any of the quiz answers).


You may also wish to share this link with some of your friends and associates; see how they fare in the forecasting/confidence game!

Popular posts from this blog

Nasdaq credit rating junked.

S&P cut Nasdaq's credit rating to junk status citing debt burdens and its questionable strategy to buy a controlling interest in the London Stock Exchange. Financial Times reported that the exchange's counterparty credit & bank loan rating were lowered fromm BBB- (lowest investment grade rating) to BB+. The change will increase Nasdaq's borrowing costs should it wish to pursue aquisition targets. For an earlier look at the exchange consolidation trend that brought about Nasdaq's push for a stake in the LSE, please see "Exchange fever" .

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean ...

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4. ...