For example: my parents have a truck, a van, and an SUV. Do they need all of those vehicles? No. Do they get used all the time? Yes: my parents are both avid gardeners, they generously lend their vehicles to those who happen to need a truck or a van for the day, and I have several younger siblings who occupy them the rest of the time.
And even if they didn't, I could well see my dad still owning a truck purely for the convenience of being able to drive to the local garden center and pick up a load of mulch on a whim - even if in practice that happened twice a year.
Emotions are strange things.
And for a lot of people it does. so what's your point. People will figure out what makes them feel good. They do not need help in this department
Perhaps you really do make use of a guest bedroom often enough it’s worth spending 10’s of thousands on. But isn’t the case everywhere. Perhaps you’re wasting money on excessive car insurance etc across a lifetime of choice it adds up to a massive drag.
In terms of EV’s people are spending more time driving to stations because they picture the once a year vacation driving taking 1 hour longer rather than the wasted 5 minutes 48 weeks a year which costs them 4.
In the end I’m just describing a common mistake, not suggesting you specifically should buy an EV or whatever.
Nope. I prefer to do what I want. And want is the criteria and hence optimal by definition. What others might think about it does not matter at all.
If you could accurately predict what would make you happy, and decide based on that, it would be optimal.
You don't.
My point is that there is a cognitive bias towards overweighting the allocation of resources toward low-frequency events.
As I pointed out upthread, low frequency is not the same as low probability.
It might not make sense to upfront allocate resources for a low probability event, but it certainly could make sense for a high probability event even if it was low frequency ... like a spare bedroom, or a dining room, or a car with good range.
The probability of using those things are 1 i.e. guaranteed.
My spare bedroom has a futon couch but I actually use the space for various other things most of the time. Most people may have space that’s underutilized much of the time but that doesn’t mean it’s sealed off until they have an overnight guest or a large dinner part. Things aren’t that binary.
When provisioning servers, do you average your throughput and get enough capacity for that average?
Of course not, that would be assinine. You need to be able to serve 24 hours a day, even - especially - during your edge cases. Follow your advice and explain to the CEO that since Black Friday is a "low frequency event," it's fine that your site was down during that one day.
A better argument is that you should choose things, including houses and cars, based on edge cases since that is where meaningful differentiation occurs. If I take one road trip each quarter and my car is unable to handle it, then I bought the wrong car.
Yes, there are countless cases of it actually making sense to have a spare bedroom. But that's beside the point. My point was that for a lot of people it is a decision that they take instinctually, but does not really make sense.