Introduction The Base Rates mental model is a powerful tool that emphasizes the importance of incorporating relevant statistical information when making decisions. It recognizes that human psychology often overlooks base rates, the general prevalence of events in a population, in favor of anecdotal or vivid information. By understanding and considering base rates, we can make […]
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Introduction In the realm of decision-making, our minds often fall prey to cognitive biases that lead us astray from rational choices. One such cognitive bias is the Base Rates mental model. Base Rates refer to the underlying probability or prevalence of an event within a given population. Understanding this concept is crucial for making informed […]