Judgements Flashcards
Kidney cancer in USA
Low prevalence countries were:
rural, sparsely population, republican, Midwest, south, west
but high prevalence countries were the same
Why do low prevalence and high prevalence countries have the same rural lifestyles?
Sparsely population - small sample, more variability
if done a year later, same pattern found but the particular countries with high and low prevalence rates would differ
The Gates foundation
Invested 1.7 billion in a programme to create small schools, because they found a large proportion of small schools getting better results than average, didn’t look at size of worst performing schools, would’ve found the they do worse than average
Small sample = more variability found
The law of small numbers
People take small samples to provide accurate estimates just as large samples do (the law of large numbers) but small samples yield extreme results more often than small samples do
What are the misperceptions of randomness?
People are misled by randomness
bomb strikes on London, falling in some areas but not others, thought certain areas were deliberately missed - but this isn’t true, no evidence it wasn’t random
do basketball players get a hot hand which causes them to score baskets from several shots in a row? the sequence of them scoring loads in a row was just random
How to we make judgements?
We use heuristic rules, easily applied, gives us quick answers, correct most the time but can lead us astray
making proper judgements takes a while. e.g. insurance company - know young people have more accidents so insurance should be more, but need to research this
What are the three heuristics?
Anchoring and adjustment
Availability
Representativeness
What is anchoring and adjustment?
When making a judgement about how likely something is, you have a starting point (the anchor) and then have to adjust this to be more accurate
Example of anchoring and adjustment
A wheel of fortune stops at either 10 or 65, people asked to read result and decide if proportion of nations in the UN that are African is larger or smaller than that number, have to make a numerical estimate
people move away from initial suggestions
if landed on 10, move to 25%
if landed on 65, move to 45%
actual figure 30%, adjustment not as much as it should be
What are 65 and 10 called in the wheel of fortune?
Anchors - people do not adjust enough from poor or arbitrary anchors
What can anchors be used in?
Negotiations - prices for used cars
Is adjustment used by system 1 or 2?
It can occur as a deliberate process but it is also subject to unconscious influences (shaking heads leads to moving further away from anchor, nodding head to less)
also evidence of a priming (system 1) component to anchoring via evoked images
A real world example of anchoring and adjustment
Estate agents valuing real properties with high and low anchors showed an anchoring effect of 40%
How do you work out the anchoring effect?
It is the difference between the final estimates divided by the difference between the anchors
What are availability and representativeness based on?
Fundamental cognitive processes
availability - retrieval from memory
representativeness - judgements made from similarity