Heard this on Podcast: Howard Lindzon's Panic with Friends Jim O'Shaugnessy
So, where is change in percentage more useful for humans ?
One scenario might be comparison or in relative terms.
The market fell by 5% on Monday vs 3% on Tuesday or
The price of corn rose by 1% vs price of coffee rose by 2%
How can this be used ?
1. Tell people losses or gains in terms of dollar amounts. Are you comfortable losing $50,000 over next month vs are alright if the stock market goes down by 20% ? Or you will gain 10lbs in an year if you keeping eating sugary foods vs eating sugar causes 15% weight gain.
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