--- title: "Meaning & Key Takeaway of: Social psychology comes into the picture…" description: "\"“Social psychology comes into the picture here, because the answer that a truthful CFO would offer is plainly ridiculous. A CFO who informs his colleag..." image: "https://sms4smile.com/quotes/i/c7f/daniel-kahneman-431_confidence_social-psychology-comes-into-the-picture_1762002.jpg" --- # Social psychology comes into the picture here, because the… ![“Social psychology comes into the picture here, because the answer that a truthful CFO would offer is plainly ridiculous. A CFO who informs his colleagues that “there is a good chance that the S&P returns will be between –10% and +30%” can expect to be laughed out of the room. The wide confidence…” quote by Daniel Kahneman](https://sms4smile.com/quotes/i/c7f/daniel-kahneman-431_confidence_social-psychology-comes-into-the-picture_1762002.jpg) [Download](https://sms4smile.com/quotes/i/c7f/daniel-kahneman-431_confidence_social-psychology-comes-into-the-picture_1762002.jpg) [Open image](https://sms4smile.com/quotes/i/c7f/daniel-kahneman-431_confidence_social-psychology-comes-into-the-picture_1762002.jpg) > ““Social psychology comes into the picture here, because the answer that a truthful CFO would offer is plainly ridiculous. A CFO who informs his colleagues that “there is a good chance that the S&P returns will be between –10% and +30%” can expect to be laughed out of the room. The wide confidence interval is a confession of ignorance, which is not socially acceptable for someone who is paid to be knowledgeable in financial matters.”” [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. A CFO giving a very wide forecast reveals ignorance, which is socially unacceptable for a financial expert. **In simple terms:** Broad forecasts expose lack of knowledge and damage credibility. Key Takeaway Avoid vague predictions; be precise. Themes credibility communication finance Mood anervous critical Type advice analytical When to use this quote - board meetings - financial reporting - investment decisions Key Concepts behavioral economics risk perception Questions to Reflect On - How can experts balance honesty with confidence? - What alternatives exist to convey uncertainty? A Different Perspective Overly precise forecasts may mislead stakeholders. ★ ★ ★ ★ ★ No ratings yet [Cfo Informs](https://sms4smile.com/quotes/about/cfo-informs-1699627/) [Cfo Offer](https://sms4smile.com/quotes/about/cfo-offer-1699626/) [Confidence](https://sms4smile.com/quotes/about/confidence/) [Confidence Interval](https://sms4smile.com/quotes/about/confidence-interval-1475497/) [Customer](https://sms4smile.com/quotes/about/customer/) [Psychology](https://sms4smile.com/quotes/about/psychology/) [Ridiculous Cfo](https://sms4smile.com/quotes/about/ridiculous-cfo-1699629/) [Social psychology](https://sms4smile.com/quotes/about/social-psychology/) [Truthful Cfo](https://sms4smile.com/quotes/about/truthful-cfo-1699628/) ## Related quotes > [My calculations - allowing for a 12 percent margin of error, based on the radius of the corresponding confidence interval and the surgeon general's…](https://sms4smile.com/quotes/darynda-jones/my-calculations-allowing-for-a-12-percent-margin-of-error-based-on/) [Darynda Jones](https://sms4smile.com/quotes/author/darynda-jones/) > [“It is "humanism" that should run in the veins of the thinking humanity, not a certain gender-oriented "ism". 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English is the language through which I flirt with…](https://sms4smile.com/quotes/abhijit-naskar/english-is-the-language-through-which-i-reach-hearts-from-various/) [Abhijit Naskar](https://sms4smile.com/quotes/author/abhijit-naskar/) > [Social action, just like physical action, is steered by perception.](https://sms4smile.com/quotes/kurt-lewin/social-action-just-like-physical-action-is-steered-by-perception/) [Kurt Lewin](https://sms4smile.com/quotes/author/kurt-lewin/) > [“Why do people want to talk to each other? I mean, what are the things people always want to find out about other people?”](https://sms4smile.com/quotes/shirley-jackson/why-do-people-want-to-talk-to-each-other-i-mean-what-are-the-things/) [Shirley Jackson](https://sms4smile.com/quotes/author/shirley-jackson/) > [“Knowing that Draco's hopeful face had probably been drilled into him by months of practice did not make it any less effective, Harry observed.…](https://sms4smile.com/quotes/eliezer-yudkowsky/knowing-that-draco-s-hopeful-face-had-probably-been-drilled-into-him/) [Eliezer Yudkowsky](https://sms4smile.com/quotes/author/eliezer-yudkowsky/) > [“In every bit of honest writing in the world, there is a base theme. Try to understand men, if you understand each other you…](https://sms4smile.com/quotes/john-steinbeck/in-every-bit-of-honest-writing-in-the-world-there-is-a-base-theme-try/) [John Steinbeck](https://sms4smile.com/quotes/author/john-steinbeck/) ## More by Daniel Kahneman > [Economists think about what people ought to do. Psychologists watch what they actually do.](https://sms4smile.com/quotes/daniel-kahneman/economists-think-about-what-people-ought-to-do-psychologists-watch/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“Belief in the Law of Small Numbers.”](https://sms4smile.com/quotes/daniel-kahneman/belief-in-the-law-of-small-numbers/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“People who are poor think like traders, but the dynamics are quite different. Unlike traders, the poor are not indifferent to the differences between…](https://sms4smile.com/quotes/daniel-kahneman/people-who-are-poor-think-like-traders-but-the-dynamics-are-quite/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“Mood evidently affects the operation of System 1: when we are uncomfortable and unhappy, we lose touch with our intuition.”](https://sms4smile.com/quotes/daniel-kahneman/mood-evidently-affects-the-operation-of-system-1-when-we-are/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [The confidence that individuals have in their beliefs depends mostly on the quality of the story they can tell about what they see, even…](https://sms4smile.com/quotes/daniel-kahneman/the-confidence-that-individuals-have-in-their-beliefs-depends-mostly/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“So this is my aim for watercooler conversations: improve the ability to identify and understand errors of judgment and choice, in others and eventually…](https://sms4smile.com/quotes/daniel-kahneman/so-this-is-my-aim-for-watercooler-conversations-improve-the-ability/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“For example, I recently came to doubt my long-held impression that adultery is more common among politicians than among physicians or lawyers.”](https://sms4smile.com/quotes/daniel-kahneman/for-example-i-recently-came-to-doubt-my-long-held-impression-that/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [Survival prospects are poor for an animal that is not suspicious of novelty.](https://sms4smile.com/quotes/daniel-kahneman/survival-prospects-are-poor-for-an-animal-that-is-not-suspicious-of/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“the idea of money primes individualism: a reluctance to be involved with others, to depend on others, or to accept demands from others.”](https://sms4smile.com/quotes/daniel-kahneman/the-idea-of-money-primes-individualism-a-reluctance-to-be-involved/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [Most of the moments of our life - and I calculated, you know, the psychological present is said to be about three seconds long;…](https://sms4smile.com/quotes/daniel-kahneman/most-of-the-moments-of-our-life-and-i-calculated-you-know-the/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“knowing little makes it easier to fit everything you know into a coherent pattern.”](https://sms4smile.com/quotes/daniel-kahneman/knowing-little-makes-it-easier-to-fit-everything-you-know-into-a/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [Experts don't know exactly where the boundaries of their expertise are.](https://sms4smile.com/quotes/daniel-kahneman/experts-don-t-know-exactly-where-the-boundaries-of-their-expertise-are/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [All of us would be better investors if we just made fewer decisions.](https://sms4smile.com/quotes/daniel-kahneman/all-of-us-would-be-better-investors-if-we-just-made-fewer-decisions/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“The best we can do is a compromise: learn to recognize situations in which mistakes are likely and try harder to avoid significant mistakes…](https://sms4smile.com/quotes/daniel-kahneman/the-best-we-can-do-is-a-compromise-learn-to-recognize-situations-in/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“A happy mood loosens the control of System 2 over performance: when in a good mood, people become more intuitive and more creative but…](https://sms4smile.com/quotes/daniel-kahneman/a-happy-mood-loosens-the-control-of-system-2-over-performance-when-in/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) [Explore all 560 Daniel Kahneman quotes ](https://sms4smile.com/quotes/author/daniel-kahneman/) ## More Confidence quotes > [The CIA has concluded in a secret assessment that Russia intervened in the 2016 election to help Donald Trump win the presidency rather than…](https://sms4smile.com/quotes/rachel-maddow/the-cia-has-concluded-in-a-secret-assessment-that-russia-intervened/) [Rachel Maddow](https://sms4smile.com/quotes/author/rachel-maddow/) > [I was just confident my work was good.](https://sms4smile.com/quotes/bunny-yeager/i-was-just-confident-my-work-was-good/) [Bunny Yeager](https://sms4smile.com/quotes/author/bunny-yeager/) > [I am confident when I take the penalty otherwise I would pass for somebody else.](https://sms4smile.com/quotes/bruno-fernandes/i-am-confident-when-i-take-the-penalty-otherwise-i-would-pass-for/) [Bruno Fernandes](https://sms4smile.com/quotes/author/bruno-fernandes/) > [I started out dancing on a reality TV show, but always with the intention of making my way over to film. I transitioned into…](https://sms4smile.com/quotes/julianne-hough/i-started-out-dancing-on-a-reality-tv-show-but-always-with-the/) [Julianne Hough](https://sms4smile.com/quotes/author/julianne-hough/) > [One of the ways that I discovered my confidence and my ability to overpower is becoming a mother. Suddenly, my world wasn't about myself…](https://sms4smile.com/quotes/lights/one-of-the-ways-that-i-discovered-my-confidence-and-my-ability-to/) [Lights](https://sms4smile.com/quotes/author/lights/) > [My friend made me a leather dress for the MTV awards. It gives you confidence, wearing something you love.](https://sms4smile.com/quotes/cat-deeley/my-friend-made-me-a-leather-dress-for-the-mtv-awards-it-gives-you/) [Cat Deeley](https://sms4smile.com/quotes/author/cat-deeley/) > [Confidence comes from cutting yourself some slack.](https://sms4smile.com/quotes/tess-daly/confidence-comes-from-cutting-yourself-some-slack/) [Tess Daly](https://sms4smile.com/quotes/author/tess-daly/) > [I would rather regret the things that I have done than the things that I have not.](https://sms4smile.com/quotes/lucille-ball/i-would-rather-regret-the-things-that-i-have-done-than-the-things/) [Lucille Ball](https://sms4smile.com/quotes/author/lucille-ball/) > [You want to remain hungry and stay in a good place as a competitor; at the same time, you want to be confident but…](https://sms4smile.com/quotes/lamar-odom/you-want-to-remain-hungry-and-stay-in-a-good-place-as-a-competitor-at/) [Lamar Odom](https://sms4smile.com/quotes/author/lamar-odom/) > [Get to know yourself well enough to not only expect, but also control, your response to the unexpected challenges in life.](https://sms4smile.com/quotes/senoraroy/get-to-know-yourself-well-enough-to-not-only-expect-but-also-control/) [Senoraroy](https://sms4smile.com/quotes/author/senoraroy/) > [The four Cs of making dreams come true: Curiosity, Courage, Consistency, Confidence.](https://sms4smile.com/quotes/walt-disney/the-four-cs-of-making-dreams-come-true-curiosity-courage-consistency/) [Walt Disney](https://sms4smile.com/quotes/author/walt-disney/) > [I look for someone who has confidence. Also someone whose energetic, cause I'm NOT that energetic.](https://sms4smile.com/quotes/nick-jonas/i-look-for-someone-who-has-confidence-also-someone-whose-energetic/) [Nick Jonas](https://sms4smile.com/quotes/author/nick-jonas/) > [Why shouldn't I be confident? I'm well educated, I can deliver a line, and I have more than three expressions. That's good right?](https://sms4smile.com/quotes/sonakshi-sinha/why-shouldn-t-i-be-confident-i-m-well-educated-i-can-deliver-a-line/) [Sonakshi Sinha](https://sms4smile.com/quotes/author/sonakshi-sinha/) > [I was very confident on the stage, and I stood out in a red gown.](https://sms4smile.com/quotes/nicole-johnson/i-was-very-confident-on-the-stage-and-i-stood-out-in-a-red-gown/) [Nicole Johnson](https://sms4smile.com/quotes/author/nicole-johnson/) > [If you go to any nunnery and ask them what the main obstacle is, they'll always say low self-esteem and lack of confidence. It…](https://sms4smile.com/quotes/tenzin-palmo/if-you-go-to-any-nunnery-and-ask-them-what-the-main-obstacle-is-they/) [Tenzin Palmo](https://sms4smile.com/quotes/author/tenzin-palmo/) [Browse all 11,290 Confidence quotes ](https://sms4smile.com/quotes/about/confidence/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Social psychology comes into the picture here, because the answer that a truthful CFO would offer is plainly ridiculous. A CFO who informs his colleagues that “there is a good chance that the S&P returns will be between –10% and +30%” can expect to be laughed out of the room. 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