In teaching statistics in secondary schools and at university, two visualizations are primarily used when situations with two dichotomous characteristics are represented: 2×2 tables and tree diagrams. Both visualizations can be depicted either with probabilities or with frequencies. Visualizations with frequencies have been shown to help students significantly more in Bayesian reasoning problems than probability visualizations do. Because tree diagrams or double-trees (which are largely unknown in school) are node-branch-structures, these two visualizations (compared to the 2×2 table) can even simultaneously (...) display probabilities on branches and frequencies inside the nodes. This is a teaching advantage as it allows the frequency concept to be used to better understand probabilities. However, 2×2 tables and (double-) trees have a decisive disadvantage: While joint probabilities (e.g., P(AB)) are represented in 2×2 tables but no conditional probabilities (e.g., P(A|B)), it is exactly the other way around with (double-) trees. Therefore, a visualization that is equally suitable for the representation of joint probabilities and conditional probabilities is desirable. In this article, we present a new visualization—the frequency net—in which all absolute frequencies and all types of probabilities can be depicted. In addition to a detailed theoretical analysis of the frequency net, we report the results of a study with 249 university students that shows that “net diagrams” can improve reasoning without previous instruction to a similar extent as 2×2 tables and double-trees. Regarding questions about conditional probabilities, frequency visualizations (2×2 table, double-tree, or net diagram with natural frequencies) are consistently superior to probability visualizations. The frequency net performs as well as the frequency double-tree. Only the 2×2 table with frequencies—the only visualization that participants were already familiar with —led to higher performance rates. If, on the other hand, a question about a joint probability had to be answered, all implemented visualizations clearly supported participants’ performance, and no uniform format effect becomes visible. Participants reached the highest performance in the versions with probability 2×2 tables and probability net diagrams. Furthermore, after conducting a detailed error analysis, we report interesting error shifts between the two information formats and the different visualizations and give recommendations for teaching probability. (shrink)

Axiomatic rationality is defined in terms of conformity to abstract axioms. Savage limited axiomatic rationality to small worlds, that is, situations in which the exhaustive and mutually exclusive set of future states S and their consequences C are known. Others have interpreted axiomatic rationality as a categorical norm for how human beings should reason, arguing in addition that violations would lead to real costs such as money pumps. Yet a review of the literature shows little evidence that violations are actually (...) associated with any measurable costs. Limiting axiomatic rationality to small worlds, I propose a naturalized version of rationality for situations of intractability and uncertainty, all of which are not in. In these situations, humans can achieve their goals by relying on heuristics that may violate axiomatic rationality. The study of ecological rationality requires formal models of heuristics and an analysis of the structures of environments these can exploit. It lays the foundation of a moderate naturalism in epistemology, providing statements about heuristics we should use in a given situation. Unlike axiomatic rationality, ecological rationality can explain less-is-more effects, formalize when one should move from ‘is’ to ‘ought,’ and be evaluated by goals beyond coherence, such as predictive accuracy, frugality, and efficiency. Ecological rationality can be seen as a formalization of means–end instrumentalist rationality, based on Herbert Simon’s insight that rational behavior is a function of the mind and its environment. (shrink)

The appeal to expert opinion is an argument form that uses the verdict of an expert to support a position or hypothesis. A previous scheme-based treatment of the argument form is formalized within a Bayesian network that is able to capture the critical aspects of the argument form, including the central considerations of the expert's expertise and trustworthiness. We propose this as an appropriate normative framework for the argument form, enabling the development and testing of quantitative predictions as to how (...) people evaluate this argument, suggesting that such an approach might be beneficial to argumentation research generally. We subsequently present two experiments as an example of the potential for future research in this vein, demonstrating that participants' quantitative ratings of the convincingness of a proposition that has been supported with an appeal to expert opinion were broadly consistent with the predictions of the Bayesian model. (shrink)

Causal reasoning is one of our most central cognitive competencies, enabling us to adapt to our world. Causal knowledge allows us to predict future events, or diagnose the causes of observed facts. We plan actions and solve problems using knowledge about cause-effect relations. Without our ability to discover and empirically test causal theories, we would not have made progress in various empirical sciences. In the past decades, the important role of causal knowledge has been discovered in many areas of cognitive (...) psychology. Despite the ubiquity of causal reasoning, textbooks of cognitive psychology have neglected this growing field. The goal of The Oxford Handbook of Causal Reasoning is to fill this gap. The handbook brings together the leading researchers in the field of causal reasoning and offers state-of-the-art presentations of theories and research. It provides introductions of competing theories of causal reasoning, and discusses its role in various cognitive functions and domains. The final section presents research from neighboring fields. 1. Causal Reasoning: An Introduction Michael R. Waldmann Part I: Theories of Causal Cognition 2. Associative Accounts of Causal Cognition Mike E. Le Pelley, Oren Griffiths, and Tom Beesley 3. Rules of Causal Judgment: Mapping Statistical Information Onto Causal Beliefs José C. Perales, Andrés Catena, Antonio Cándido, and Antonio Maldonado 4. The Inferential Reasoning Theory of Causal Learning: Toward a Multi- Process Propositional Account Yannick Boddez, Jan De Houwer, and Tom Beckers 5. Causal Invariance as an Essential Constraint for Creating a Causal Representation of the World: Generalizing the Invariance of Causal Power Patricia W. Cheng and Hongjing Lu 6. The Acquisition and Use of Causal Structure Knowledge Benjamin Margolin Rottman 7. Formalizing Prior Knowledge in Causal Induction Thomas L. Griffiths 8. Causal Mechanisms Samuel G. B. Johnson and Woo-kyoung Ahn 9. Force Dynamics and Causation Phillip Wolff and Robert Thorstad 10. Mental Models and Causation P. N. Johnson- Laird and Sangeet S. Khemlani 11. Pseudocontingencies Klaus Fiedler and Florian Kutzner 12. Singular Causation David Danks 13. Cognitive Neuroscience of Causal Reasoning Joachim T. Operskalski and Aron K. Barbey Part II: Basic Cognitive Functions 14. Visual Impressions of Causality Peter White 15. Goal-Directed Actions Bernhard Hommel 16. Planning and Control Magda Osman 17. Reinforcement Learning and Causal Models Samuel J. Gershman 18. Causation and the Probability of Causal Conditionals David E. Over 19. Causal Models and Conditional Reasoning Mike Oaksford and Nick Chater 20. Concepts as Causal Models: Categorization Bob Rehder 21. Concepts as Causal Models: Induction Bob Rehder 22. Causal Explanation Tania Lombrozo and Nadya Vasilyeva 23. Diagnostic Reasoning Björn Meder and Ralf Mayrhofer 24. Inferring Causal Relations by Analogy Keith J. Holyoak and Hee-Seung Lee 25. Causal Argument Ulrike Hahn, Roland Bluhm, and Frank Zenker 26. Causality in Decision- Making York Hagmayer and Philip M. Fernbach Part III: Domains of Causal Reasoning 27. Intuitive Theories Tobias Gerstenberg and Joshua B. Tenenbaum 28. Space, Time, and Causality Marc J. Buehner 29. Causation in Legal and Moral Reasoning David A. Lagnado and Tobias Gerstenberg 30. The Role of Causal Knowledge in Reasoning About Mental Disorders Woo-kyoung Ahn, Nancy S. Kim, and Matthew S. Lebowitz 31. Causality and Causal Reasoning in Natural Language Torgrim Solstad and Oliver Bott 32. Social Attribution and Explanation Denis Hilton Part IV: Development, Phylogeny, and Culture 33. The Development of Causal Reasoning Paul Muentener and Elizabeth Bonawitz 34. Causal Reasoning in Non-Human Animals Christian Schloegl and Julia Fischer 35. Causal Cognition and Culture Andrea Bender, Sieghard Beller, and Douglas L. Medin. (shrink)

Recent work on conditional reasoning argues that denying the antecedent [DA] and affirming the consequent [AC] are defeasible but cogent patterns of argument, either because they are effective, rational, albeit heuristic applications of Bayesian probability, or because they are licensed by the principle of total evidence. Against this, we show that on any prevailing interpretation of indicative conditionals the premises of DA and AC arguments do not license their conclusions without additional assumptions. The cogency of DA and AC inferences rather (...) depends on contingent factors extrinsic to, and independent of, what is asserted by DA and AC arguments. arguments do not license their conclusions without additional assumptions. The cogency of DA and AC inferences rather depends on contingent factors extrinsic to, and independent of, what is asserted by DA and AC arguments. (shrink)

This commentary presents a self-assessment inventory that will allow readers to determine their own attitude toward the base rate fallacy and its literature. The inventory is scientifically valid but not Medicare/Medicaid reimbursable.

The fallacy beneath the base rate fallacy is that we know what a base rate is. We talk as if base rates and individuating information were two different kinds of information. From a Bayesian perspective, however, the only difference between base rate and individuating information is – which comes first.

Any instance (i.e., event, behavior, trait) belongs to infinitely many reference classes, hence there are infinitely many base rates from which to choose. People clearly do not entertain all possible reference classes, however, so something must be limiting the search space. We suggest some possible mechanisms that determine which reference class is evoked for the purpose of judgment and decision.

Abstract(1) The miscitations of seminal experiments in the base rate literature adds to the existing database of systematic miscitations of wellknown psychological experiments. These miscitations may be caused by a process of reconstructive remembering. (2) Representative design should be the methodological core of Koehler's call for ecologically valid research. This approach can benefit both basic and applied research.

Two distinct issues are sometimes confused in the base rate literature: Why do people make logical mistakes in the assessment of probabilities? and why do subjects not use base rates the way experimenters do? The latter problem may often reflect differences in an implicit reference class rather than a disinclination to update a base rate by Bayes' theorem. Also important are considerations concerning the interaction of several potentially relevant base rates.

There is a familiar risk of antinomy if fromxisEand p(xisH/xisE) =rit is permissible to infer p(xisH) =r, and what Carnap (1950) called “The requirement of total evidence” will not prevent such antinomies satisfactorily. What is needed instead is a properly developed theory of evidential weight.

Abstract(1) There is enough contradictory evidence regarding the role of base rates in category learning to confirm the nonexistence of biases in such learning. (2) It is not always possible to activate statistical reasoning through frequentist representation. (3) It is necessary to use the concept of systematic processing in reconsidering the published work on biases.

Bayesian reasoning has been applied formally to statistical inference, machine learning and analysing scientific method. Here I apply it informally to more common forms of inference, namely natural language arguments. I analyse a variety of traditional fallacies, deductive, inductive and causal, and find more merit in them than is generally acknowledged. Bayesian principles provide a framework for understanding ordinary arguments which is well worth developing.

In his early experimental work with Suppes, Davidson adopted rationality assumptions, not as necessary constraints on interpretation, but as practical conceits in addressing methodological problems faced by experimenters studying decision making under uncertainty. Although the content of their theory has since been undermined, their methodological approach—a Galilean form of methodological rationalism—lives on in contemporary psychological research. This article draws on Max Weber’s verstehen to articulate an account of Galilean methodological rationalism; explains how anomalies faced by Davidson’s early experimental work gave (...) rise to his later, canonical claims about rationality and interpretation; and reclaims this Galilean framework for use in contemporary psychological research. (shrink)

is normative in the sense that it aims to make recommendations for improving human judgment; it aims to have a practical impact on morally and politically significant human decisions and actions; and it studies normative, rational judgment qua rational judgment. These nonstandard ways of understanding ACP as normative collectively suggest a new interpretation of the strong replacement thesis that does not call for replacing normative epistemic concepts, relations, and inquiries with descriptive, causal ones. Rather, it calls for recognizing that the (...) aims and normative inquiries of epistemology and normative psychology have become intermutual in nature. Key Words: Heuristics and biases • applied cognitive psychology • normative psychology • rationality • naturalized epistemology • Epistemics • Applied Naturalized Epistemology • strong replacement • strategic reliabilism • ameliorative psychology. (shrink)

Gerd Gigerenzer's views on probabilistic reasoning in humans have come under close scrutiny. Very little attention, however, has been paid to his evolutionary component of his argument. According to Gigerenzer, reasoning about probabilities as frequencies is so common today because it was favored by natural selection in the past. This paper presents a critical examination of this argument. It will show first, that, _pace_ Gigerenzer, there are some reasons to believe that using the frequency format was not more adaptive than (...) using the standard (percentage) format and, second, that Gigerenzer's evolutionary argument and his other arguments such as his historical description of the notion of probability are in tension with each other. (shrink)

The terms nested sets, partitive frequencies, inside-outside view, and dual processes add little but confusion to our original analysis (Gigerenzer & Hoffrage 1995; 1999). The idea of nested set was introduced because of an oversight; it simply rephrases two of our equations. Representation in terms of chances, in contrast, is a novel contribution yet consistent with our computational analysis System 1.dual process theory” is: Unless the two processes are defined, this distinction can account post hoc for almost everything. In contrast, (...) an ecological view of cognition helps to explain how insight is elicited from the outside (the external representation of information) and, more generally, how cognitive strategies match with environmental structures. (shrink)

The phenomenon of base-rate neglect has elicited much debate. One arena of debate concerns how people make judgments under conditions of uncertainty. Another more controversial arena concerns human rationality. In this target article, we attempt to unpack the perspectives in the literature on both kinds of issues and evaluate their ability to explain existing data and their conceptual coherence. From this evaluation we conclude that the best account of the data should be framed in terms of a dual-process model of (...) judgment, which attributes base-rate neglect to associative judgment strategies that fail to adequately represent the set structure of the problem. Base-rate neglect is reduced when problems are presented in a format that affords accurate representation in terms of nested sets of individuals. (shrink)

The experimental research paradigm lies at the core of empirical psychology. New data analytical and computational tools continually enrich its methodological arsenal, while the paradigm’s mission remains the testing of theoretical predictions and causal explanations. Predictions regarding experimental results necessarily point to the future. Once the data are collected, the causal inferences refer to a hypothesis now lying in the past. The experimental paradigm is not designed to permit strong inferences about particular incidents that occurred before predictions were made. In (...) contrast, historical research and scholarship in other humanities focus on this backward direction of inference. The disconnect between forward-looking experimental psychology and backward-looking historical (i.e., narrative) psychology is a challenge in the postmodern era, which can be addressed. To illustrate this possibility, I discuss three historical case studies in light of theory and research in contemporary psychology. (shrink)

Commentators agree that simple conclusions about a general base rate fallacy are not appropriate. It is more constructive to identify conditions under which base rates are differentially weighted. Commentators also agree that improving the ecological validity of the research is desirable, although this is less important to those interested exclusively in psychological processes. The philosophers and ecologists among the commentators offer a kinder perspective on base rate reasoning than the psychologists. My own perspective is that the interesting questions (both psychological (...) and normative/prescriptive) are best answered through empirical studies that use real-world performance standards. (shrink)

When base rates are learned and used in an experiential manner subjects show better base rate use, perhaps because the implicit learning system is engaged. A causal framework in which base rates are relevant might also be necessary. Humans might thus perform better on more ecologically valid tasks, which are likely to contain those three components.

Koehler's summary and critique of research on the base rate fallacy is cogent and persuasive. However, he may have overstated the case, and his suggestions for future research may be too restrictive. We agree that methodological approaches to this topic should be broadened, but we argue that experimental laboratory research and the Bayesian normative standard are useful and should not be abandoned.

Base rates have no necessary relation to judgments that are not themselves probabilities. There is no logical imperative, for instance, that behavioral base rates must affect causal attributions or that base rate information should affect judgments of legal liability. Decision theorists should be cautious in arguing that base rates place normative constraints on judgments of anything other than posterior probabilities.

A recent study showed physicians' reasoning about a realistic case to be ignorant of base rate. It also showed physicians interpreting information pertinent to base rate differently, depending on whether it was presented early or late in the case. Although these adult reasoners might do better if given hints through talk of relative frequencies, this would not prove that they had no problem of base rate neglect.

Koehler is right that base rate information is used, to various degrees, both in laboratory tasks and in everyday life. However, it is not time to turn our backs on laboratory tasks and focus solely on ecologically valid decision making. Tightly controlled experimental data are still needed to understandhowbase rate information is used, and how this varies among groups.

The base rate fallacy is directly dependent on a particular judgment paradigm in which information may be unambiguously designated as either “base rate” or “individuating,” and in which subjects make two-stage sequential judgments. The paradigm may be a poor match for real world settings, and the fallacy may thus be undefined for natural ecologies of judgment.

The base rate literature has an opposite twin in the social psychological literature on stereotypes, which concludes that people use their preexisting beliefs about probabilistic category attributes too much, rather than not enough. This ironic discrepancy arises because beliefs about category attributes enhance accuracy when the beliefs are accurate and diminish accuracy when they are not. To determine the accuracy of base rate/stereotype beliefs requires research that addresses specific content.

We have been oversold on the base rate fallacy in probabilistic judgment from an empirical, normative, and methodological standpoint. At the empirical level, a thorough examination of the base rate literature (including the famous lawyer–engineer problem) does not support the conventional wisdom that people routinely ignore base rates. Quite the contrary, the literature shows that base rates are almost always used and that their degree of use depends on task structure and representation. Specifically, base rates play a relatively larger role (...) in tasks where base rates are implicitly learned or can be represented in frequentist terms. Base rates are also used more when they are reliable and relatively more diagnostic than available individuating information. At the normative level, the base rate fallacy should be rejected because few tasks map unambiguously into the narrow framework that is held up as the standard of good decision making. Mechanical applications of Bayes's theorem to identify performance errors are inappropriate when (1) key assumptions of the model are either unchecked or grossly violated, and (2) no attempt is made to identify the decision maker's goals, values, and task assumptions. Methodologically, the current approach is criticized for its failure to consider how the ambiguous, unreliable, and unstable base rates of the real world are and should be used. Where decision makers' assumptions and goals vary, and where performance criteria are complex, the traditional Bayesian standard is insufficient. Even where predictive accuracy is the goal in commonly defined problems, there may be situations (e.g., informationally redundant environments) in which base rates can be ignored with impunity. A more ecologically valid research program is called for. This program should emphasize the development of prescriptive theory in rich, realistic decision environments. (shrink)

Koehler's target article attempts a balanced view of the relevance of knowledge of base rates to judgments of subjective or credal probability, but he is not sensitive enough to the difference between requiring and permitting the equation of probability judgments with base rates, the interaction between precision of base rate and reference class information, and the possibility of indeterminate probability judgment.

In contrast to traditional research on base-rate neglect, an ecologically-oriented research program would analyze the correspondence between cognitive algorithms and the nature of information in the environment. Bayesian computations turn out to be simpler when information is represented in frequency formats as opposed to the probability formats used in previous research. Frequency formats often enable even uninstructed subjects to perform Bayesian reasoning.

The paper examines constraints and preferences employed by people in learning decision rules from preclassified examples. Results from four experiments with human subjects were analyzed and compared with artificial intelligence (AI) inductive learning programs. The results showed the people's rule inductions tended to emphasize category validity (probability of some property, given a category) more than cue validity (probability that an entity is a member of a category given that it has some property) to a greater extent than did the AI (...) programs. Although the relative proportions of different rule types (e.g., conjunctive vs. disjunctive) changed across experiments, a single process model provided a good account of the data from each study. These observations are used to argue for describing constraints in terms of processes embodied in models rather than in terms of products or outputs. Thus AI induction programs become candidate psychological process models and results from inductive learning experiments can suggest new algorithms. More generally, the results show that human inductive generalizations tend toward greater specificity than would be expected if conceptual simplicity were the key constraint on inductions. This bias toward specificity may be due to the fact that this criterion both maximizes inferences that may be drawn from category membership and protects rule induction systems from developing over‐generalizations. (shrink)

Abstract A general framework is proposed for accommodating the recent results of studies into ?natural? decision making. A crucial element of this framework is the notion of a ?partial structure?, recently introduced into the semantic approach to scientific theories. It is through the introduction of this element that connections can be made with certain problems regarding inconsistency and rationality in general.

Cognitive algebra strongly disproved the representativeness heuristic almost before it was published; and therewith it also disproved the base rate fallacy. Cognitive algebra provides a theoretical foundation for judgment-decision theory through its joint solution to the two fundamental problems – true measurement of subjective values, and cognitive rules for integration of multiple determinants.

In the present paper we empirically investigate the psychometric properties of some of the most famous statistical and logical cognitive illusions from the “heuristics and biases” research program by Daniel Kahneman and Amos Tversky, who nearly 50 years ago introduced fascinating brain teasers such as the famous Linda problem, the Wason card selection task, and so-called Bayesian reasoning problems (e.g., the mammography task). In the meantime, a great number of articles has been published that empirically examine single cognitive illusions, theoretically (...) explaining people’s faulty thinking, or proposing and experimentally implementing measures to foster insight and to make these problems accessible to the human mind. Yet these problems have thus far usually been empirically analyzed on an individual-item level only (e.g., by experimentally comparing participants’ performance on various versions of one of these problems). In this paper, by contrast, we examine these illusions as a group and look at the ability to solve them as a psychological construct. Based on an sample ofN= 2,643 Luxembourgian school students of age 16–18 we investigate the internal psychometric structure of these illusions (i.e., Are they substantially correlated? Do they form a reflexive or a formative construct?), their connection to related constructs (e.g., Are they distinguishable from intelligence or mathematical competence in a confirmatory factor analysis?), and the question of which of a person’s abilities can predict the correct solution of these brain teasers (by means of a regression analysis). (shrink)

Setting the two hypotheses of complete neglect and full use of base rates against each other is inappropriate. The proper question concerns the degree to which base rates are used (or neglected), and under what conditions. We outline alternative approaches and recommend regression analysis. Koehler's conclusion that we have been oversold on the base rate fallacy seems to be premature.

Failure to consider base rate is regarded as potentially hazardous, mainly because its consideration is assumed to be determined solely by P(H/D), the probability of the individuating data if the hypothesis is true, and not at all by P(D/˜H), the probability if the hypothesis is false. However, when P(D/˜H) is unconfounded from P(D/H), it turns out to be the stronger determinant of base rate consideration.

The concept of an evidential conditional _If A then C_ that can be defined by the conjunction of \(A>C\) and \(\lnot C > \lnot A\), where > is a conditional of the kind introduced by Stalnaker and Lewis, has recently been studied in a series of papers by Vincenzo Crupi and Andrea Iacona. In this paper I argue that Crupi and Iacona’s central idea that contraposition captures the idea of evidential support cannot be maintained. I give examples showing that contraposition (...) is neither necessary nor sufficient for a conditional’s antecedent supporting its consequent. Crupi and Iacona’s alternative account of evidential conditionals that is based on a probabilistic measure of evidential support cannot add to the credentials of their modal account, because both the theoretical role of contraposition and the resulting logic are different in this account. (shrink)