Sunday, 16 January 2011

Risk Intelligence Quotient

Risk Intelligence Quotient (RQ) is a measure of a person’s ability to estimate probabilities accurately.

People with high risk intelligence tend to make better predictions than those with low RQ.

There is five minute test at which will measure your RQ. For what it's worth, my score was 81.

The Office for National Statistics carried out a study a few years back, which included these two questions: Choose from A) A guaranteed payment of £1,000 or B) A 1 in 5 chance of winning £10,000.

Would you rather receive £1,000 today or £1,100 next year?

The results show that people were predominantly averse to risk and had short time horizons financially.

More than three-quarters (78 per cent) of people said they would choose to receive a guaranteed payment of £1,000 rather than take a one in five chance of winning £10,000, while 22 per cent preferred the option of winning £10,000.

Similarly, 80 per cent of people said they would rather receive £1,000 today than £1,100 next year, while 20 per cent said they would rather receive £1,100 next year.


Anonymous said...

Took the test and scored 78.

Mark Iverson said...

I love this test.....

Found it on the Geeks Toy forum last year:

Scored 86 for what it's worth.

Mark Iverson said...

......and stop pinching things from the BF Forum to put on your blog ;-)