Of course, intuition is also subject to certain biases, explains Prof. Usher, and leads to more risks -- risks that people are willing to take. That was shown when the researchers engaged participants in tests that measured their risk-taking tendencies, and were surprised to discover that the majority of the participants didn't play it safe. When faced with a choice between two sets of numbers with the same average, one with a narrow distribution, such as 45 and 55, and another with a broad distribution, such as 70 and 30, people were swayed by the large numbers and took a chance on the broadly distributed numbers rather than making the "safe" choice.I'd bet the broad distribution isn't the cause. More likely this difference comes from the logarithmic nature of our senses.
Labels: Blinded by Stats
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