Final answer:
People tend to rely more on diagnostic information than base rates when making judgments and decisions. This is known as the base rate fallacy.
Step-by-step explanation:
Base rates refer to the general probability of an event occurring within a population. Diagnostic information, on the other hand, provides specific details about an individual case. Research has shown that people tend to rely more on diagnostic information than base rates when making judgments and decisions. This is known as the base rate fallacy.
For example, let's say there is a rare disease that affects 1 in 10,000 people in a population. If a person exhibits symptoms of this disease, their chance of having it is relatively low. However, if the person also has diagnostic information indicating a high likelihood of the disease, people tend to focus on the diagnostic information rather than the low base rate.
So, in summary, people tend to be less accurate in incorporating base rates when they are combined with diagnostic information. They may prioritize the specific details of an individual case over the general probabilities represented by the base rates.