The thirty-five chapters in this book describe various judgmental heuristics and the biases they produce, not only in laboratory experiments but in important...

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)

Bayes’ formula is a fundamental statistical method for inference judgments in uncertain situations used by both laymen and professionals. However, since people often fail in situations where Bayes’ formula can be applied, how to improve their performance in Bayesian situations is a crucial question. We based our research on a widely accepted beneficial strategy in Bayesian situations, representing the statistical information in the form of natural frequencies. In addition to this numerical format, we used five visualizations: a 2×2-table, a unit (...) square, an icon array, a tree diagram, and a double-tree diagram. In an experiment with 688 undergraduate students, we empirically investigated the effectiveness of three graphical properties of visualizations: area-proportionality, use of discrete and countable statistical entities, and graphical transparency of the nested-sets structure. We found no additional beneficial effect of area-proportionality. In contrast, the representation of discrete objects seems to be beneficial. Furthermore, our results show a strong facilitating effect of making the nested-sets structure of a Bayesian situation graphically transparent. Our results contribute to answering the questions of how and why a visualization could facilitate judgment and decision making in situations of uncertainty. (shrink)

Changing the information format from probabilities into frequencies as well as employing appropriate visualizations such as tree diagrams or 2 × 2 tables are important tools that can facilitate people’s statistical reasoning. Previous studies have shown that despite their widespread use in statistical textbooks, both of those visualization types are only of restricted help when they are provided with probabilities, but that they can foster insight when presented with frequencies instead. In the present study, we attempt to replicate this effect (...) and also examine, by the method of eye tracking, why probabilistic 2 × 2 tables and tree diagrams do not facilitate reasoning with regard to Bayesian inferences (i.e., determining what errors occur and whether they can be explained by scan paths), and why the same visualizations are of great help to an individual when they are combined with frequencies. All ten inferences of N = 24 participants were based solely on tree diagrams or 2 × 2 tables that presented either the famous “mammography context” or an “economics context” (without additional textual wording). We first asked participants for marginal, conjoint, and (non-inverted) conditional probabilities (or frequencies), followed by related Bayesian tasks. While solution rates were higher for natural frequency questions as compared to probability versions, eye-tracking analyses indeed yielded noticeable differences regarding eye movements between correct and incorrect solutions. For instance, heat maps (aggregated scan paths) of distinct results differed remarkably, thereby making correct and faulty strategies visible in the line of theoretical classifications. Moreover, the inherent structure of 2 × 2 tables seems to help participants avoid certain Bayesian mistakes (e.g., “Fisherian” error) while tree diagrams seem to help steer them away from others (e.g., “joint occurrence”). We will discuss resulting educational consequences at the end of the paper. (shrink)

The Monty-Hall Problem ($MHP$) has been used to argue against a subjectivist view of Bayesianism in two ways. First, psychologists have used it to illustrate that people do not revise their degrees of belief in line with experimenters' application of Bayes' rule. Second, philosophers view $MHP$ and its two-player extension ($MHP2$) as evidence that probabilities cannot be applied to single cases. Both arguments neglect the Bayesian standpoint, which requires that $MHP2$ (studied here) be described in different terms than usually applied (...) and that the initial set of possibilities be stable (i.e., a focusing situation). This article corrects these errors and reasserts the Bayesian standpoint; namely, that the subjective probability of an event is always conditional on a belief reviser's specific current state of knowledge. (shrink)

Visual aids can improve comprehension of risks associated with medical treatments, screenings, and lifestyles. Do visual aids also help decision makers accurately assess their risk comprehension? That is, do visual aids help them become well calibrated? To address these questions, we investigated the benefits of visual aids displaying numerical information and measured accuracy of self-assessment of diagnostic inferences (i.e., metacognitive judgment calibration) controlling for individual differences in numeracy. Participants included 108 patients who made diagnostic inferences about three medical tests on (...) the basis of information about the sensitivity and false-positive rate of the tests and disease prevalence. Half of the patients received the information in numbers without a visual aid, while the other half received numbers along with a grid representing the numerical information. In the numerical condition, many patients --especially those with low numeracy-- misinterpreted the predictive value of the tests and profoundly overestimated the accuracy of their inferences. Metacognitive judgment calibration mediated the relationship between numeracy and accuracy of diagnostic inferences. In contrast, in the visual aid condition, patients at all levels of numeracy showed high-levels of inferential accuracy and metacognitive judgment calibration. Results indicate that accurate metacognitive assessment may explain the beneficial effects of visual aids and numeracy --a result that accords with theory suggesting that metacognition is an essential part of risk literacy. We conclude that well-designed risk communications can inform patients about health-relevant numerical information while helping them assess the quality of their own risk comprehension. (shrink)

In this article applied and theoretical epistemologies benefit each other in a study of the British legal case of R. vs. Clark. Clark's first infant died at 11 weeks of age, in December 1996. About a year later, Clark had a second child. After that child died at eight weeks of age, Clark was tried for murdering both infants. Statisticians and philosophers have disputed how to apply Bayesian analyses to this case, and thereby arrived at different judgments about it. By (...) dwelling on this applied case, I make theoretical gains: clarifying and defending pragmatic principles of inference that are important for estimating key probabilities in a range of cases. Then, partly by drawing on such principles, and uncovering overlooked data on post-partum psychosis, I make applied gains: improving the rationality of judgments about the Sally Clark case in particular, judgments important to future similar cases. (shrink)

The commentaries indicate a general agreement that one source of reduction of base-rate neglect involves making structural relations among relevant sets transparent. There is much less agreement, however, that this entails dual systems of reasoning. In this response, we make the case for our perspective on dual systems. We compare and contrast our view to the natural frequency hypothesis as formulated in the commentaries.

For more than 20 years, research has proven the beneficial effect of natural frequencies when it comes to solving Bayesian reasoning tasks (Gigerenzer & Hoffrage, 1995). In a recent meta-analysis, McDowell & Jacobs (2017) showed that presenting a task in natural frequency format increases performance rates to 24% compared to only 4% when the same task is presented in probability format. Nevertheless, on average three quarters of participants in their meta-analysis failed to obtain the correct solution for such a task (...) in frequency format. In this paper, we present an empirical study on what participants typically do wrong when confronted with natural frequencies. We found that many of them did not actually use natural frequencies for their calculations, but translated them back into complicated probabilities instead. This switch from the intuitive presentation format to a less intuitive calculation format will be discussed within the framework of psychological theories (e.g., the Einstellung effect). (shrink)