A Swedish validation of the Berlin Numeracy Test

Becoming ‘Homo Economicus’ as Learned Behavior among Numerate Greek University Students

In this study, we use experimental methods to probe how far individuals depart from choices consistent with “Rational Economic Man” and whether these departures are associated with financial and numeric literature on the one hand, and, more fundamentally, with impulsive or analytical thinking—i.e., with cognitive reflection. We examine a purposely biased sample of Greek undergraduates enrolled in a course heavy on statistics and probability who participated in a battery of tests. Specifically, we use the Cognitive Reflection Test (CRT) jointly with numeric and financial literacy tools to understand how “irrational choices” result. Despite the expected bias, responders with lower CRT are more likely to be susceptible to behavioral biases, even when controlling for numeracy and financial literacy. In agreement with other studies, gender is associated with significance differences, which operate both independently and through the mediation of CRT.

The decision paradoxes motivating Prospect Theory: The prevalence of the paradoxes increases with numerical ability

Prospect Theory (PT: Kahneman & Tversky, 1979) of risky decision making is based on psychological phenomena (paradoxes) that motivate assumptions about how people react to gains and losses, and how they weight outcomes with probabilities. Recent studies suggest that people’s numeracy affect their decision making. We therefore conducted a large-scale conceptual replication of the seminal study by Kahneman and Tversky (1979), where we targeted participants with larger variability in numeracy. Because people low in numeracy may be more dependent on anchors in the form of other judgments we also manipulated design type (within-subject design, vs. single-stimuli design, where participants assess only one problem). The results from about 1,800 participants showed that design type had no effect on the modal choices. The rate of replication of the paradoxes in Kahneman and Tversky was poor and positively related to the participants’ numeracy. The Probabilistic Insurance Effect was observed at all levels of numeracy. The Reflection Effects were not fully replicated at any numeracy level. The Certainty and Isolation Effects explained by nonlinear probability weighting were replicated only at high numeracy. No participant exhibited all 9 paradoxes and more than 50% of the participants exhibited at most three of the 9 paradoxes. The choices by the participants with low numeracy were consistent with a shift towards a cautionary non-compensatory strategy of minimizing the risk of receiving the worst possible outcome. We discuss the implications for the psychological assumptions of PT.

How does mathematics anxiety impair mathematical abilities? Investigating the link between math anxiety, working memory, and number processing

In contemporary society, it is essential to have adequate mathematical skills. Being numerate has been linked to positive life outcomes and well-being in adults. It is also acknowledged that math anxiety (MA) hampers mathematical skills increasingly with age. Still, the mechanisms by which MA affect performance remain debated. Using structural equation modeling (SEM), we contrast the different ways in which MA has been suggested to interfere with math abilities. Our models indicate that MA may affect math performance through three pathways: (1) indirectly through working memory ability, giving support for the 'affective drop' hypothesis of MA's role in mathematical performance, (2) indirectly through symbolic number processing, corroborating the notion of domain-specific mechanisms pertaining to number, and (3) a direct effect of MA on math performance. Importantly, the pathways vary in terms of their relative strength depending on what type of mathematical problems are being solved. These findings shed light on the mechanisms by which MA may interfere with mathematical performance.