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Thinking and Deciding

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THE MECHANISM OF JUDGMENT 377<br />

pendent. Within this pool, GRE score <strong>and</strong> research experience are unrelated. Now<br />

suppose that the GRE score is missing for one applicant, <strong>and</strong> we make a judgment<br />

of acceptability on the basis of research experience alone. Since the applicant’s research<br />

experience is near the top of our scale, we give the applicant a very high<br />

rating, compared to others in the pool. Then the applicant takes the Graduate Record<br />

Examination, <strong>and</strong> the scores turn out to be a little better than the average of those in<br />

the pool. Should we raise our rating for this person or lower it?<br />

Most people would lower it (Lichtenstein, Earle, <strong>and</strong> Slovic, 1975), but they<br />

should raise it. The lowering of the rating is just another example of subjects behaving<br />

roughly as though they were averaging the two cues; the second cue lowers the<br />

subjective average of the two. (Any account that explains departures from the adding<br />

model can explain this.)<br />

Why should the rating be raised? Before we find out the applicant’s GRE, our<br />

best guess is that it is at the average of the group. This is what we would guess if<br />

we knew nothing at all, <strong>and</strong> since the applicant’s research experience is unrelated to<br />

GRE, we should still guess that the GRE is average after we knew about research<br />

experience. Therefore, when we find out that the student’s GRE is a little better<br />

than average, we ought to think that this student is even better than we would have<br />

predicted when we did not know her GRE. (This argument depends on the cues being<br />

independent. If the cues are highly correlated, a moderate level of one should make<br />

us suspect the validity of a very high value on another.)<br />

Representativeness in numerical prediction<br />

The representativeness heuristic (discussed in Chapter 6) seems to cause biases in<br />

quantitative judgment just as it causes biases in probability judgment. In the example<br />

I just gave, we expect the GRE to be above average because that kind of GRE score<br />

is more similar to (more representative of) the applicant’s research experience than<br />

an average GRE score would be. We seem to have made a prediction based on<br />

similarity rather than on the normative model, which holds that we ought to ignore<br />

research experience — which is useless information because it is unrelated to GRE<br />

score — <strong>and</strong> to guess the average GRE score.<br />

As another example, suppose you are told that a certain student ranked in the<br />

ninetieth percentile in terms of grade point average (GPA) in his first year of college.<br />

What is your best guess of the student’s GPA? Suppose you say 3.5 (between<br />

B <strong>and</strong> A), because you think that this is the ninetieth percentile for GPA. (So far, you<br />

have done nothing unreasonable.) Now what GPA would you predict for another<br />

student, who scored in the ninetieth percentile on a test of mental concentration? or<br />

for another student who scored in the ninetieth percentile on a test of sense of humor?<br />

Many subjects give the same prediction of 3.5 (Kahneman <strong>and</strong> Tversky, 1973,<br />

pp. 245–247). This may be because a GPA of 3.5 is most similar to the ninetieth<br />

percentile on the other measures.<br />

In fact — as I shall explain shortly — your prediction should regress toward<br />

the mean (the average grade for the class, which was judged to be about 2.5 by

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