How the “Flaw of Averages” Distorts Investor Decision-Making When Planning for Future Goals
How the “Flaw of Averages” Distorts Investor Decision-Making When Planning for Future Goals Consider the case of the statistician who drowns while wading through a river that he calculated to be, on average, three feet deep. If he were alive to tell the tale, he would warn that plans based on assumptions about average conditions…