Base Rate Fallacy

The video discusses a form of cognitive bias where individuals prioritize new or immediate information over commonly understood or statistically relevant data. This bias leads to suboptimal decision-making as it causes individuals to overlook established facts and principles. The focus on immediate information results in a failure to appreciate all available data, ultimately affecting the quality of decisions made.

What is a cognitive bias?

• A tendency to focus on new information over established facts

• A method of statistical analysis

• A form of emotional intelligence

• A type of logical reasoning

How does cognitive bias affect decision-making?

• It improves decision-making by considering all information

• It leads to better understanding of new information

• It enhances statistical analysis

• It results in subpar decisions by ignoring established facts

What is often neglected due to cognitive bias?

• Personal opinions

• Commonly understood facts and principles

• Immediate information

• New information

What does cognitive bias favor over common understanding?

• Historical data

• Personal beliefs

• Immediate information

• Future predictions

What is a key characteristic of cognitive bias?

• It leads to comprehensive decision-making

• It appreciates all available information

• It enhances logical reasoning

• It causes a failure to appreciate all available information