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How do you know whom to trust? - Ram Neta

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TEDEd Animation

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We believe a lot of things because we’ve been told - from our personal acquaintances and also experts. With so many belief systems being passed to us, how do we know whom to trust? Using contemporary examples, Ram Neta explains when listening to experts is a good idea...and when it’s not.

Alice has been successfully managing her investments for over 30 years, so her investment decisions are carefully watched by other investors. 85% of the time that she buys 100 or more shares in a company that company’s stock price rises within a week. 75% of the time that she buys 50 or more shares in a company that company’s stock price rises within a week. But, strangely, only 55% of the time that she buys precisely 20 shares in a company does that company’s stock price rise within a week. Today, Alice buys 15 shares of ACME. How confident should you be that ACME’s stock price will rise within a week?

About TED-Ed Animations

TED-Ed Animations feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed Animation? Nominate yourself here »

Meet The Creators

  • Animator Colleen Cox
  • Educator Ram Neta
  • Narrator Ram Neta

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