Paper #1204

Títol:

Econometrics and decision making: Effects of presentation mode

Autors:

Robin Hogarth i Emre Soyer

Data:

Febrer 2010

Resum:

Much of empirical economics involves regression analysis. However, does the presentation of results affect economists’ ability to make inferences for decision making purposes? In a survey, 257 academic economists were asked to make probabilistic inferences on the basis of the outputs of a regression analysis presented in a standard format. Questions concerned the distribution of the dependent variable conditional on known values of the independent variable. However, many respondents underestimated uncertainty by failing to take into account the standard deviation of the estimated residuals. The addition of graphs did not substantially improve inferences. On the other hand, when only graphs were provided (i.e., with no statistics), respondents were substantially more accurate. We discuss implications for improving practice in reporting results of regression analyses.

Paraules clau:

Regression analysis; presentation formats; probabilistic predictions; graphs., leex

Codis JEL:

C01; C20; C53; Y10

Àrea de Recerca:

Economia Experimental i del Comportament

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