EXAM 3
Name: Total: / 30
Book Review: Risk Savvy
G
1
erd Gigerenzer has a mission. The German psychologist wants people to be more rational about
how they deal with risk. He believes that there is a great deal of misunderstanding with how people
interpret all the information that they receive in our data-rich age. This is the subject of his new book Risk
Savvy: How to Make Good Decisions.
5
It’s a problem that affects not only the general public but also may know Apple and Coca-Cola but not other more obscure
experts. They can also make elementary errors! For example, companies that would only be on the mind of a stockbroker
40
a U.S. weather forecaster once said there would be a 50% or financial advisor.
chance of rain on Saturday and Sunday. From this,
he concluded that the likelihood of rain that weekend was This is not just an academic game. Our attitudes toward
10
100%. This is clearly nonsense. So, if an expert risk have a profound effect on our behavior.
can make an elementary mathematical Stunned by the events of 9/11 when
mistake like this, what hope is left for terrorists flew two planes into the World
45
the rest of us? Trade Center in New York, many
Americans developed a new
Actually, part of Gigerenzer’s fear of flying. It was the reason
15
argument is that people why they took many trips
should trust their own by car—with tragic results.
50
judgment more. He gives Travel experts estimate
a financial example, taken that some 1,600 people
from his own life, because more than usual died in
20
Gigerenzer is keen to traffic accidents during the
put his theories into following year.
practice. Indeed, this is one
55
academic who refuses to There are many other
live in an ivory tower. arguments that could be
used to defend Gigerenzer’s
25
Gigerenzer tried an experiment approach. For example, many
based on the stock market. Instead farmers were worried about their
60
of asking financial experts for investment animals dying from illness. They
tips, he hit the streets and spoke to people responded by feeding their animals
at random. He took out a list of company names and antibiotics as a normal part of their diet. This goes
30
showed them to people. When someone recognized one, he completely against medical advice and has created a
would buy shares in that company. The results were amazing! situation where bacteria have had so much exposure to the
65
drugs that they have developed resistance to them. That’s
The success or failure of this project is logical. In general, why doctors can no longer use antibiotics to treat many
people aren’t that familiar with numerous companies common ailments because the pills have become useless.
because they don’t read the financial section of newspapers.
35
Ones that they have heard of are usually those that have Gigerenzer’s book has come at the right time because modern
had a major impact on people’s lives—and that impact society is growing more panicky and risk-averse each day. It’s
70
would probably come from previous success. So “Joe Public” time now for everyone to relax and trust their common sense.
6
1 Complete the sentences with the correct form of the verb in parentheses. / 4 points
1. If Dana (work) hard, she will be successful.
2. If we don’t leave the now, we (not / catch) the train.
3. If I (be) you, I would read more in English.
4. If we had played better, we (win) the game.
2 Complete the sentences with the words in the box. / 5 points
confusingly hopefully legally luckily unfortunately
1. Take these aspirin. , they’ll make you feel better.
2. We entered an online photo competition. , we didn’t win.
3. , you cannot vote until you are 18 in the U.S.
4. The rules were supposed to be in English. , they were in Chinese.
5. I left my ID at the clinic. , the receptionist found it!
3 Complete the sentences with the words below. / 5 points
algorithm hierarchy research and development synergy tools
1. My company has a very complicated . There are many levels and I’m at the bottom!
2. When they work together, the results are twice as good. What a great example of !
3. As a plumber, you need to use different .
4. The computer program uses this to decide when to stop and start the machines.
5. Our company’s department is trying to create a new kind of toothpaste.
4 Find the words in bold in the article. What do they refer to? / 5 points
1. They
2. He
3. Ones
4. It
5. They
5 Circle the meaning of the words and expressions from the article. / 5 points
1. likelihood (line 9)
a. average b. probability c. weather
2. live in an ivory tower (line 24)
a. live separate from reality b. live happily c. live in a skyscraper
3. at random (line 29)
a. politely b. quickly c. spontaneously
4. stockbroker (line 39)
a. a local politician b. a supermarket employee c. a share buyer and seller
5. ailments (line 67)
a. diseases b. farm animals c. food products
6 Write a one-paragraph summary of the article. / 6 points
Exam 3 • © Richmond Publishing, S.A. de C.V. Photocopiable 7
