Search results
Results from the WOW.Com Content Network
The base rate fallacy, ... An example of the base rate fallacy is the false ... There is considerable debate in psychology on the conditions under which people do or ...
For example, if the control group, using no treatment at all, had their own base rate of 1/20 recoveries within 1 day and a treatment had a 1/100 base rate of recovery within 1 day, we see that the treatment actively decreases the recovery. The base rate is an important concept in statistical inference, particularly in Bayesian statistics. [2]
A base rate is a phenomenon's basic rate of incidence. The base rate fallacy describes how people do not take the base rate of an event into account when solving probability problems. [12] This was explicitly tested by Dawes, Mirels, Gold and Donahue (1993) who had people judge both the base rate of people who had a particular personality trait ...
Base rate fallacy – making a probability judgment based on conditional probabilities, without taking into account the effect of prior probabilities. [ 6 ] Conjunction fallacy – the assumption that an outcome simultaneously satisfying multiple conditions is more probable than an outcome satisfying a single one of them.
Thus, people can overestimate the likelihood that something has a very rare property, or underestimate the likelihood of a very common property. This is called the base rate fallacy. Representativeness explains this and several other ways in which human judgments break the laws of probability. [14]
In another example of near-total neglect of probability, Rottenstreich and Hsee (2001) found that the typical subject was willing to pay $10 to avoid a 99% chance of a painful electric shock, and $7 to avoid a 1% chance of the same shock. They suggest that probability is more likely to be neglected when the outcomes are emotion-arousing.
For those who are feeling “stuck" or overwhelmed while striving for work-life balance, some experts recommend adopting a “pendulum lifestyle." Psychologists weigh in on the potential benefits.
For example, for certain types of questions, answers that people rate as "99% certain" turn out to be wrong 40% of the time. [5] [43] [44] [45] Planning fallacy, the tendency for people to underestimate the time it will take them to complete a given task. [46]