Original source: SimoleonSense.com .
I almost always translate probabilities into frequencies (when looking at companies etc). So I was happy to read this.
Synopsis (via Phys Org)
Is it better to present data in percentages (80% of 70) or as a frequency (56 out of 70 times)? According to a new study in the Journal of Consumer Research, data presented in the frequency format leads to more accurate judgments.
Excerpts (via Phys Org)
Authors Dipayan Biswas, (Bentley University), Guangzhi Zhao, (University of Kansas), and Donald R. Lehmann, (Columbia University) conducted four experiments to determine which type of numerical presentation elicited the greatest confidence in consumers and which led to the most accurate conclusions. They found that people have to work harder to process data presented in frequency format, which leads to higher confidence in their judgments.
Percentages appear easier for consumers to understand. The experiments showed that “when the sequential data are in percentage format, consumers tend to average the data since it is relatively easy to do so,” the authors write. But averaging percentages is not always the best route to an accurate conclusion.
Click Here To Read: Irrationality strikes again? Data presentation and consumer confidence
Data presentation and consumer confidence
July 20, 2010 <!–
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Authors Dipayan Biswas, (Bentley University), Guangzhi Zhao, (University of Kansas), and Donald R. Lehmann, (Columbia University) conducted four experiments to determine which type of numerical presentation elicited the greatest confidence in consumers and which led to the most accurate conclusions. They found that people have to work harder to process data presented in frequency format, which leads to higher confidence in their judgments.
Percentages appear easier for consumers to understand. The experiments showed that “when the sequential data are in percentage format, consumers tend to average the data since it is relatively easy to do so,” the authors write. But averaging percentages is not always the best route to an accurate conclusion.
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