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 the cognitive bias described in the text?

How does this cognitive bias affect decision making?

What types of information do individuals tend to neglect due to this bias?

In what way does the bias lead to subpar decision making?

What is the consequence of focusing on immediate information rather than common understanding?