1968
DOI: 10.1016/0030-5073(68)90025-1
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Subjective sampling distributions and conservatism

Abstract: When people revise subjective probabilities in light of data, revisions are less than the amount prescribed by the normative model, Bayes's theorem. Previous research suggests that this results from the subjects' lack of understanding of the implications of the data; i.e., from inaccurate subjective sampling distributions. This experiment examined the effects on conservatire revisions of training subjects about, the implications of data. The subjects estimated sampling distributions for two binomial population… Show more

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Cited by 54 publications
(18 citation statements)
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References 7 publications
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“…The findings caution against assuming Bayesian belief formation in models of statistical reasoning about explicit prospective beliefs based on repeated events with known probabilities.Goodman & Tenenbaum, 2015;Vul, 2010) and should be simple for a Bayesian decision-maker.Across elicitation methods and decision scenarios, both novices and experts estimate a biased "wizard-hat" shaped subjective binomial distribution. They over-estimated the tails and underestimated the shoulders of the distribution relative to the "gendarme-hat" shaped (Edgeworth's characterization, per Stigler 1999) normative distribution.The bias in estimates is broadly consistent with prior findings documenting errors people make in generating "sampling distributions" (Kahneman & Tversky, 1972;Peterson, DuCharme and Edwards 1968;Wheeler and Beach 1968). However, unlike prior findings, these results cannot be explained by high error variance and regression to the mean, heterogeneity, misunderstanding of general distribution characteristics, or elicitation-specific biases.…”
supporting
confidence: 84%
“…The findings caution against assuming Bayesian belief formation in models of statistical reasoning about explicit prospective beliefs based on repeated events with known probabilities.Goodman & Tenenbaum, 2015;Vul, 2010) and should be simple for a Bayesian decision-maker.Across elicitation methods and decision scenarios, both novices and experts estimate a biased "wizard-hat" shaped subjective binomial distribution. They over-estimated the tails and underestimated the shoulders of the distribution relative to the "gendarme-hat" shaped (Edgeworth's characterization, per Stigler 1999) normative distribution.The bias in estimates is broadly consistent with prior findings documenting errors people make in generating "sampling distributions" (Kahneman & Tversky, 1972;Peterson, DuCharme and Edwards 1968;Wheeler and Beach 1968). However, unlike prior findings, these results cannot be explained by high error variance and regression to the mean, heterogeneity, misunderstanding of general distribution characteristics, or elicitation-specific biases.…”
supporting
confidence: 84%
“…The biased sampling distribution hypothesis was supported by the observation that subjective sampling distributions were indeed flatter than the objective ones, and substituting these beliefs into Bayes' rule accorded well with reported posterior beliefs (Peterson, DuCharme, & Edwards, 1968;Wheeler & Beach, 1968). On the other hand, a critical weakness of this hypothesis is that it cannot explain the existence of under-reaction with a sample size of 1, which would require that subjects disbelieve the experimenter when they are explicitly told the sampling distribution (i.e., the proportion of red chips in the bag).…”
Section: Under-reaction To Probabilistic Informationmentioning
confidence: 78%
“…Since, as found in psychological literature, conservatism is also due to the subjects' misperception of the data [16,17,18], the effects found in our comparison can also be due to an incorrect weighting given to the ambiguous data --subjects assume ambiguous data occurs a fraction of time which is not equal to the prescribed 0.2 . Models will be developed which take into account the above mentioned cognitive biases.…”
Section: A Nornuiye Moandkandr Subor-mentioning
confidence: 87%
“…Most of these studies indicate that the subjective estimates of event probabilities are monotonically related to those specified by the Bayes' rule, but are conservative. Conservatism has been attributed to the inability of the subjects to integrate the meaning of the data into a probability estimate and their lack of understanding of the implications of the data, i.e., usage of inaccurate probability distributions [16,17,18]. The subjects' estimates were based on a different data-generating model than the one used by the experimenters [17].…”
mentioning
confidence: 99%
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