Q. Which of the following best describes ‘black swan’ event? Answer:
An unpredictable event that comes as a surprise and has a significant impact on society
Notes:
A black swan is a rare, unpredictable event that comes as a surprise and has a significant impact on society or the world.
These events are said to have three distinguishing characteristics, they are extremely rare and outside the realm of regular expectations, they have a severe impact after they hit, and they seem probable in hindsight when plausible explanations appear.
The 2008 global financial crisis, the fall of the Soviet Union, the terrorist attack in the US on September 11, 2001 are black swan events.