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Statistical numeracy as a moderator of (pseudo)contingency effects on decision behavior
Hanna Fleig1, Thorsten Meiser1, Florence Ettlin1
1Department of Psychology, School of Social Sciences, University of Mannheim, Schloss Ehrenhof Ost, D-68131 Mannheim, Germany.
Statistical numeracy influences how people estimate relationships. Focusing on base rates, rather than specific data, can lead to inaccurate conclusions called pseudocontingencies, even for numerate individuals.
Area of Science:
- Cognitive Psychology
- Decision Making
- Behavioral Economics
Background:
- Pseudocontingencies arise from estimating relationships using base rates instead of direct data (cell frequencies).
- Understanding the influence of statistical numeracy on these inferences is crucial for explaining choice behavior.
Purpose of the Study:
- To investigate the impact of statistical numeracy on pseudocontingency effects.
- To examine how information availability (base rates vs. cell frequencies) affects these inferences.
Main Methods:
- Experiment 1: Assessed choice behavior and tracked eye movements while providing base rate and single observation data.
- Experiment 2: Manipulated the availability of cell frequency and base rate information across different conditions.
Main Results:
- A focus on base rates, compared to cell frequencies, enhanced pseudocontingency effects.
- Highly numerate individuals preferred using cell frequencies, evidenced by gaze patterns.
- When cell frequencies were summarized, even numerate learners showed susceptibility to pseudocontingency effects.
Conclusions:
- Pseudocontingency effects are influenced by statistical numeracy and information format.
- Numerate individuals can be misled by pseudocontingencies when detailed cell frequency data is not readily available.
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