Final answer:
The magical number 7 theory suggests that most people can hold around seven digits in their short-term memory, but newer research indicates it might be about four. This theory is a cornerstone of cognitive psychology regarding human memory capacity.
Step-by-step explanation:
The magical number 7 theory, introduced by psychologist George Miller, suggests that most people can hold seven digits in their short-term memory, also known in psychology as working memory. This concept implies that the storage capacity of short-term memory is around 7 items, give or take 2. Although recent studies by researchers like Cowan in 2010 suggest that the number may be closer to 4 plus or minus 1, the original theory still stands as a significant point of reference in the field of cognitive psychology. It's important to note that there are techniques such as chunking that can aid in memory retention by organizing information into manageable units. Moreover, the capacity for memory recall can vary depending on whether the information is acoustic or visual, with numbers usually being remembered more easily than letters.