
“Let’s now turn our attention to the predator. The predator, too, can make two types of error: It can commit itself to killing prey that turns out to be too dangerous or too large or too fast (type I error), or it can refrain from attacking prey that it could easily have killed (type II error). Which error do you think a predator makes more often? A cheetah is the fastest mammal on Earth and routinely achieves speeds of eighty to one hundred kilometers per hour while chasing prey.6 It sacrifices size and bulk for speed. A cheetah typically weighs 34 to 54 kilograms (75 to 120 pounds), which is significantly less than a lion, whose weight typically ranges from 170 to 230 kilograms (375 to 500 pounds). Hence, a cheetah usually preys on smaller animals like birds, rabbits, and small antelopes. A cheetah will never attempt to kill an adult water buffalo, a favorite prey of lions. The cheetah is simply trying to avoid getting hurt. Committing a type I error will lead either to death—water buffalos can turn on their hunters aggressively—or wasted energy—when a cheetah chases an antelope that was too far away to begin with. These mistakes, in turn, will lead to hunger and poorer hunting performance.”
―
What I Learned About Investing from Darwin
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