Prediction. Todd Davies Symsys 130 April 22, 2013

Similar documents
Reasoning with Uncertainty. Reasoning with Uncertainty. Bayes Rule. Often, we want to reason from observable information to unobservable information

6 Induction. 6.1 Correlation. Todd Davies, Decision Behavior: Theory and Evidence (Winter 2007) Version: March 8, 2007

Decision-making II judging the likelihood of events

Do Causal Beliefs Influence the Hot-Hand and the Gambler s Fallacy?

When Intuition. Differs from Relative Frequency. Chapter 18. Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

Psychological. Influences on Personal Probability. Chapter 17. Copyright 2005 Brooks/Cole, a division of Thomson Learning, Inc.

Lecture 15. When Intuition Differs from Relative Frequency

Heuristics as beliefs and as behaviors: The adaptiveness of the "Hot Hand" Bruce D. Burns. Michigan State University

Inside View Versus Outside View Irregularity Hypothesis Attribute Substitution

Behavioral Game Theory

Reasoning about probabilities (cont.); Correlational studies of differences between means

ISC- GRADE XI HUMANITIES ( ) PSYCHOLOGY. Chapter 2- Methods of Psychology

Probabilistic judgment

DETECTING STRUCTURE IN ACTIVITY SEQUENCES: EXPLORING THE HOT HAND PHENOMENON

Christopher J. R. Roney a & Lana M. Trick b a King's University College at the University of Western

Heuristics: Bias vs. Smart Instrument. An Exploration of the Hot Hand

FAQ: Heuristics, Biases, and Alternatives

Are Humans Rational? SymSys 100 April 14, 2011

Chance. May 11, Chance Behavior The Idea of Probability Myths About Chance Behavior The Real Law of Averages Personal Probabilities

Kevin Burns. Introduction. Foundation

Representativeness heuristics

Readings: Textbook readings: OpenStax - Chapters 1 11 Online readings: Appendix D, E & F Plous Chapters 10, 11, 12 and 14

ROLE OF HEURISTICS IN RISK MANAGEMENT

An Understanding of Role of Heuristic on Investment Decisions

HEURISTICS AND BIASES

The Beauty and Necessity of Good Research Design

Alternation blindness in the perception of binary sequences

Risk Aversion in Games of Chance

Describe what is meant by a placebo Contrast the double-blind procedure with the single-blind procedure Review the structure for organizing a memo

Probabilities and Research. Statistics

Managerial Decision Making: Session 6

Rationality in Cognitive Science

PSYCHOLOGICAL RESEARCH ON CONTINGENCY TABLES

Randomness and inductions from streaks: Gambler s fallacy versus hot hand

Biases in Casino Betting: The Hot Hand and the Gambler s Fallacy

THE CONJUNCTION EFFECT AND CLINICAL JUDGMENT

Numeracy, frequency, and Bayesian reasoning

Experimental Economics Lecture 3: Bayesian updating and cognitive heuristics

Oct. 21. Rank the following causes of death in the US from most common to least common:

Perception Search Evaluation Choice

The Story of The Hot Hand: Powerful Myth or Powerless Critique?

Confirmation Bias. this entry appeared in pp of in M. Kattan (Ed.), The Encyclopedia of Medical Decision Making.

Chapter 11 Decision Making. Syllogism. The Logic

PSYCHOLOGY : JUDGMENT AND DECISION MAKING

G646: BEHAVIORAL DECISION MAKING. Graduate School of Business Stanford University Fall 2007

Dilution Effects in Perceptual Information Integration

The Lens Model and Linear Models of Judgment

Is probability matching smart? Associations between probabilistic choices and cognitive ability

1. What is the difference between positive and negative correlations?

CPS331 Lecture: Coping with Uncertainty; Discussion of Dreyfus Reading

Thinking. Thinking is... Different Kinds of Thinking. the manipulation of information or creation of new information, usually to reach a goal.

References. Christos A. Ioannou 2/37

Why are people bad at detecting randomness? A statistical analysis

Jane L. Risen Research Statement

Probability matching and strategy availability

1 Introduction. Yoav Ganzach Tel Aviv University

From a fixation on sports to an exploration of mechanism: The past, present, and future of hot hand research

Single-case probabilities and content-neutral norms: a reply to Gigerenzer

Chapter Three Research Methodology

Thinking. Definition & Types of Thinking. Big Questions & Two Strategies. Judgment. Reasoning. Decision-Making. Problem Solving.

Behavioural Issues: Heuristics & Biases; Level-k Reasoning

Environments That Make Us Smart

Effects of Sequential Context on Judgments and Decisions in the Prisoner s Dilemma Game

Calibration in tennis: The role of feedback and expertise

AP Psychology Ch. 01 Psych Science & Stats Study Guide

A Belief-Based Account of Decision under Uncertainty. Craig R. Fox, Amos Tversky

The hot hand fallacy and the gambler s fallacy: Two faces of subjective randomness?

Psy 803: Higher Order Cognitive Processes Fall 2012 Lecture Tu 1:50-4:40 PM, Room: G346 Giltner

Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission.

Judgment under Uncertainty: Heuristics and Biases

Can Ordinal Utility Exist?

Narrow Norms of Predication?

Changing Myself, Changing My Fate: How anticipating negative outcomes prompts self-relevant change. Adelle Xue Yang.

Rational Learning and Information Sampling: On the Naivety Assumption in Sampling Explanations of Judgment Biases

Biased Probability Judgment: Representative Evidence for Pervasiveness and Economic Outcomes

The wicked learning environment of regression toward the mean

Utility Maximization and Bounds on Human Information Processing

Representativeness and Investment Decision Making

DEMOGRAPHICS AND INVESTOR BIASES AT THE NAIROBI SECURITIES EXCHANGE, KENYA

Advanced/Advanced Subsidiary. You must have: Mathematical Formulae and Statistical Tables (Blue)

Lecture (Fall-2014): Judgment and Decision Biases

Autism: Attacking Social Interaction Problems. A Pre-Vocational Training Manual for Ages 17+

A Review of Counterfactual thinking and the first instinct fallacy by Kruger, Wirtz, and Miller (2005)

CHAPTER 3 METHOD AND PROCEDURE

Presentation and Content: The Use of Base Rates as a Continuous Variable

Clever Hans the horse could do simple math and spell out the answers to simple questions. He wasn t always correct, but he was most of the time.

Standard Deviation and Standard Error Tutorial. This is significantly important. Get your AP Equations and Formulas sheet

On the Conjunction Fallacy in Probability Judgment: New Experimental Evidence

Judging the Relatedness of Variables: The Psychophysics of Covariation Detection

Cooperation in Risky Environments: Decisions from Experience in a Stochastic Social Dilemma

MULTIPLE LINEAR REGRESSION 24.1 INTRODUCTION AND OBJECTIVES OBJECTIVES

Tilburg University. The Gambler's Fallacy and Gender Suetens, Sigrid; Tyran, J.R. Publication date: Link to publication

Behavioural models. Marcus Bendtsen Department of Computer and Information Science (IDA) Division for Database and Information Techniques (ADIT)

Neuroscience For Coaches Module 3 Biases. Synaptic Potential Ltd 2015 Behavioural Biases

Simple heuristics in a social world. Ralph Hertwig

Hypothesis Testing. Applying the Concepts

Biases and [Ir]rationality Informatics 1 CG: Lecture 18

Sampling experience reverses preferences for ambiguity

Simple Tools for Understanding Risks: From Innumeracy to Insight

PS3003: Judgment and Decision Making

Transcription:

Prediction Todd Davies Symsys 130 April 22, 2013

Variable Prediction Independent variable (IV) predictor Dependent variable (DV) - target

Judgment and Prediction Estimation predict a population statistic from a sample statistic for the same variable Sample mean -> Population mean Sample frequency -> Long-term frequency Subjective probability -> Actual probability Intuitive correlation -> Pearson correlation Cross-variable prediction predict a value of one variable based on another Prior odds, likelihood ratio -> Posterior odds Predictor variables -> Target variable in regression model

Perspectives on human judgment Heuristics and Biases (HB, Tversky, Kahneman) Other approaches Rational analysis of cognition (Chater, Oaksford) Bounded rationality (Gigerenzer, Hertwig) Naturalistic Decision Making (NDM, Klein, Shanteau)

Intuitive correlation Jennings, Amabile, and Ross (1982) gave subjects lists of number pairs. The task was to assign a number between -100 and 100 (inclusive) to each list based on the strengt hof the relationship between the pairs. Quoting Baron (2000): The true correlation coefficients of the numbers in each list differed from list to list: the range was from 0 to 1. Subjects gave ratings near 100 for correlations of 1, and ratings near 0 for correlations of 0. For correlations of 5, subjects gave ratings of about 20. These results tell us that the naïve idea of 'degree of relationship', although it resembles correlation, is not quite the same as the relationship measured by the correlation Coefficient. The subjects' deviation from mathematical correlation was not an error, for the correlation coefficient is only one of many possible measures of association, and there is no reason subjects should use this particular measure.

Illusory correlation Chapman and Chapman (1971) gave college students drawings from the Draw-a- Person test, a tool used in clinical diagnosis of mental disorders. Each drawing was labeled with a psychological characteristic supposedly corresponding to the person who made the drawing. Example characteristics were suspicious of other people and has had problems of sexual impotence. The labels were chosen so that there was no correlation between psychological characteristics and pictorial features in the drawings widely believed to be associated with these characteristics, e.g. big eyes for suspicious of other people and sexual features for has had problems of sexual impotence. The subjects were asked to discover relationships between drawing features and psychological characteristics from these drawings, and reported the correlations that widely held prior beliefs predicted would exist. The authors called this illusory correlation. The correlations that were found by subjects in the Draw-a-Person test experiment were the same as ones believed by clinicians who worked with actual patients, but no such correlations existed in the patient population. A similar study was done with Rorschach inkblot test data. Students found illusory positive correlations in Rorschach data between patients' actual responses and their clinical diagnoses when a relationship between the response and diagnosis is naively predicted. They also failed to find relationships that did exist when these were not expected.

The hot hand flipside of the gambler s fallacy Gilovich, Vallone, and Tversky (1985, handed out) recruited 100 basketball fans from the student bodies of Stanford and Cornell Universities to fill out a questionnaire. The sample included 50 captains of intramural basketball teams, and all subjects played basketball at least occasionally (65% played regularly ). All watched at least 5 games per year and 73% watched more than 15 games a year. The authors write: The fans were asked to consider a hypothetical player who shoots 50% from the field. Their average estimate of his field goal percentage was 61% 'after having just made a shot,' and 42% 'after having just missed a shot.' Moreover, the former estimate was greater than or equal to the latter for every respondent. When asked to consider a hypothetical player who shoots 70% from the free-throw line, the average estimate of his free-throw percentage was 74% for second free throws after having made the first, and 66% for second free throws after having missed the first. Thus, our survey revealed that basketball fans believe in streak shooting. Gilovich et al. collected data from National Basketball Association (NBA) games for both field goals and free throws. In both cases, they found no evidence for streak shooting, also known as the hot hand hypothesis. Serial correlations (the correlations between boolean outcomes on a shot given the previous shot) were negative on average, the opposite of what people predict, and there were no more streaks in the shooting data than would be expected by chance.

Confusing likelihood for posterior odds What does it mean to say that marijuana is a gateway drug?

Calibration Probabilistic confidence = Assessed probability 0.5 Confidence intervals Common findings about overconfidence