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Here is a slightly different spin from what TAM wrote:

I believe that we are all created in God's image. What does this mean? Not that we physiologically or anthropomorphically resemble God, but that like God, we can use our gifts that we have received from him to improve the world, or not. It is our choice, as God has given us brains with which to think, and free will. It is our choice to follow a certain path, and God sees all of the paths that we might take, but does not intervene. We are God's creatures and he wants us to experience creation for ourselves. However, sometimes, things just happen for which there is no explanation that God cares to share with mortals - but there is a greater purpose...

God has given us a set of rules by which we are to guide our lives - the Bible. We can choose life, we can choose to be good, or we can choose evil. We can use our free will, our talents, our brains to cure disease, to save human lives, or we can use those same gifts to cause misery and destruction.

Sometimes I think God over-estimated our abilities and made it too difficult, 'cause we really do seem to screw things up on a mammoth scale.

The interpretation above follows from the teachings of the Hebrew bible and so others will have their own different, but equally legitimate interpretations. I don't think that there is one right answer, except to "do undo others as you would have them do unto you".

My two cents...

Deuteronomy 20:8

And the officers shall speak further unto the people, and they shall say: 'What man is there that is fearful and faint-hearted? let him go and return unto his house, lest his brethren's heart melt as his heart.'