Book: Thinking Fast & Slow; Step-9

Published:  2011 & Pages: 500

14x Step Learning

Step-9
Tricks of the Brain

The way we evaluate ideas and approach problems is greatly influenced by how they are presented to us. Even slight changes in the wording or focus of a statement or question can significantly impact our responses. An excellent example of this phenomenon is evident in how we assess risk. While you might expect that once we can determine the probability of a risk, everyone would respond the same way, this is not the case. Even when probabilities are precisely calculated, altering how the information is framed can lead to different responses.

For instance, people are more likely to perceive a rare event as likely to occur if it is expressed in terms of relative frequency rather than as a statistical probability. In the Mr. Jones experiment, two groups of psychiatric professionals were asked about the safety of discharging Mr. Jones from a psychiatric hospital. The first group was informed that patients like Mr. Jones had a “10 percent probability of committing an act of violence,” and the second group was told that “of every 100 patients similar to Mr. Jones, 10 are estimated to commit an act of violence.” Surprisingly, almost twice as many respondents in the second group opposed his discharge.

Another cognitive bias that diverts our attention from statistically relevant information is known as Denominator Neglect. This occurs when we overlook plain statistics in favor of vivid mental images that influence our decisions. Consider these two statements: “This drug protects children from disease X but has a 0.001 percent chance of permanent disfigurement” versus “One out of 100,000 children who take this drug will be permanently disfigured.” Despite both statements having equal mathematical weight, the latter conjures a mental image of a disfigured child and has a more profound impact, making us less likely to administer the drug.

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10x Short Questions

1. How does the way ideas are presented affect our judgment and problem-solving?

It can significantly influence our responses.

2. What happens when the presentation of risk changes, even with carefully calculated probabilities?

It can lead to different responses and approaches.

3. In the Mr. Jones experiment, what was the difference in the two groups' responses to Mr. Jones's discharge?

The second group, presented with relative frequency, had more respondents opposing his discharge.

4. What is denominator neglect, and how does it affect our decision-making?

Denominator neglect occurs when we focus on vivid mental images rather than plain statistics, influencing our decisions.

5. How do people's reactions differ when they read about a rare event in terms of relative frequency compared to statistical probability?

They are more likely to perceive the rare event as likely to occur when expressed in terms of relative frequency.

6. Why did the second statement about the drug's side effect, despite having the same probability, have a stronger impact?

It created a vivid mental image, making people less likely to administer the drug.

7. What's the lesson from the Mr. Jones experiment about how information is presented?

The framing of information can significantly impact people’s decisions and judgments.

8. How does our response to risk change when probabilities are expressed differently?

It can alter our perception of the risk’s likelihood and influence our decisions.

9. What is the significance of denominator neglect in decision-making?

It highlights our tendency to focus on mental images rather than plain statistics.

10. What should we be aware of when presenting information to ensure more informed decisions?

We should consider how the framing of information can affect people’s responses and judgments.

Check Your Knowledge
10x MCQs

0

Book Summary Thinking Fast and Slow Test-9 (QM)

Book Summary Thinking Fast and Slow Test-9 (QM)

The number of attempts remaining is 100

1 / 10

1. What happens when the presentation of risk changes, even with carefully calculated
probabilities?

2 / 10

2. How do people react to a rare event when it's expressed in terms of relative frequency
compared to statistical probability?

3 / 10

3. In the Mr. Jones experiment, what was the difference in the two groups responses to Mr.
Jones's discharge?

4 / 10

4. Why did the second statement about the drug's side effect, despite having the same probability,
have a stronger impact?

5 / 10

5. What is the significance of denominator neglect in decision-making?

6 / 10

6. What should we be aware of when presenting information to ensure more informed decisions?

7 / 10

7. What is denominator neglect, and how does it affect decision-making?

8 / 10

8. What's the lesson from the Mr. Jones experiment about how information is presented?

9 / 10

9. How does our response to risk change when probabilities are expressed differently?

10 / 10

10. How does the presentation of ideas affect our judgment and problem-solving?

Your score is

0%

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