RPC Test 1 EXAM PRACTICE AND PROSEDURE GUIDE WITH COMPLETE SOLUTION [PASSED]

Base Rate Neglect - The tendency for people to overweigh diagnostic information and underweigh base rates ex. The linda problem: Linda is more likely a bank teller because all feminists who are bank tellers are bank tellers and there are more bank tellers than feminists Frequency vs. Probability - The (false) idea that more chances means more likely Gambler's Fallacy - The belief that when viewing a sequence of events, the next result will be opposite the previous one even though the events are independent Law of Large Numbers - Over enough trials, the outcomes will match the statistical probability Law of Small Numbers - The false belief that the Law of Large Numbers applies to small samples "Hot Hand" - The belief that streaks will continue if the streak is perceived as controllable Negative Recency Bias - Negative outcomes seem more likely when the sequence is perceived to be random Positive Recency Bias - Positive outcomes seem more likely when the sequence is perceived to be controllable Regression to the Mean - Extreme events are followed by ones closer to the mean