Question

Bob wins the lottery. Since he knows the overall probability of winning the lottery is really low, he does not bother buying another ticket. This is an example of base rate fallacy.

1) True
2) False

Answer 1

False. The scenario described does not represent a base rate fallacy. Bob's decision to not buy another lottery ticket is based on his awareness of the overall low probability of winning the lottery.

Step-by-step explanation:

False. The scenario described does not represent a base rate fallacy. The base rate fallacy refers to the tendency to ignore or underutilize the general probability or base rate of an event when making judgments or decisions. In this case, Bob's decision to not buy another lottery ticket is based on his awareness of the overall low probability of winning the lottery, which is a correct understanding of the base rate of winning. Therefore, it is not an example of base rate fallacy.