That's just not true. If I believe that my team has a 20% chance to win and you offer me a bet with anything better than 5-to-1 odds I should take the bet. If you offer me anything worse than 5-to-1, then I should not take the bet. There's no fuzz factor necessary; no confidence interval that I need to use to make the decision.
Perhaps you're getting at the idea of calibration? That it's difficult for a person to know what a 20% chance feels like? But there are still a lot of situations where it's not up to human judgement.