Intuitivet tests: Lay use of statistical information

Normatively, a statistical pairwise comparison is a function of the mean, standard deviation (SD), and sample size of the data. In our experiment, 203 undergraduates compared product pairs and judged their confidence that one product was better than the other. We experimentally manipulated (within subjects) the average product ratings, the number of raters (sample size), and theSD of the ratings. Each factor had two levels selected, so that the same change in statistical power resulted from moving from the low to the high level. We also manipulated (between subjects) whether subjects were given only the product rating data as summarized in a statistical format or the summaries plus the raw ratings. Subjects gave the most weight to mean product ratings, less weight to sample size, and very little weight toSD. Providing subjects with raw data did not increase their use of sample size andSD, as predicted.

[1]  R. Hertwig,et al.  Decisions from Experience and the Effect of Rare Events in Risky Choice , 2004, Psychological science.

[2]  Gerd Gigerenzer,et al.  Communicating Statistical Information , 2000, Science.

[3]  Gerd Gigerenzer,et al.  How to Improve Bayesian Reasoning without Instruction , 2002 .

[4]  C. Gallistel,et al.  Mathematical Cognition , 2005 .

[5]  Gerd Gigerenzer,et al.  Intuitions About Sample Size: The Empirical Law of Large Numbers , 1997 .

[6]  A. Tversky,et al.  Subjective Probability: A Judgment of Representativeness , 1972 .

[7]  Gerd Gigerenzer,et al.  The "conjunction fallacy" revisited : How intelligent inferences look like reasoning errors , 1999 .

[8]  Gerd Gigerenzer,et al.  Adaptive Thinking: Rationality in the Real World , 2000 .

[9]  D. Krantz,et al.  The use of statistical heuristics in everyday inductive reasoning , 1983 .

[10]  S. Frederick Journal of Economic Perspectives—Volume 19, Number 4—Fall 2005—Pages 25–42 Cognitive Reflection and Decision Making , 2022 .

[11]  G. Gigerenzer,et al.  Teaching Bayesian reasoning in less than two hours. , 2001, Journal of experimental psychology. General.

[12]  Daniel A. Gottlieb,et al.  The Format in Which Uncertainty Information Is Presented Affects Decision Biases , 2007, Psychological science.

[13]  Gerd Gigerenzer,et al.  How to Improve Bayesian Reasoning Without Instruction: Frequency Formats , 1995 .

[14]  Peter Dixon,et al.  Likelihood ratios: A simple and flexible statistic for empirical psychologists , 2004, Psychonomic bulletin & review.

[15]  A. Tversky,et al.  Judgment under Uncertainty: Heuristics and Biases , 1974, Science.

[16]  Rochel Gelman,et al.  Early understandings of numbers: paths or barriers to the construction of new understandings? , 1998 .

[17]  G. Gigerenzer,et al.  Simple tools for understanding risks: from innumeracy to insight , 2003, BMJ : British Medical Journal.

[18]  G Gigerenzer,et al.  Using natural frequencies to improve diagnostic inferences , 1998, Academic medicine : journal of the Association of American Medical Colleges.