This paper reports the results of 2 studies that examine the perceptio
ns of individuals attempting to generate random sequences. It was hypo
thesized that erroneous perceptions dominate probability judgment. The
first study demonstrated that subjects verbalized significantly more
erroneous than accurate perceptions when generating sequences of rando
m binary events. The second study was designed both to replicate these
data and to assess the role of motivation on the frequency of misconc
eptions. Results showed that the total number of erroneous perceptions
again outnumbered accurate perceptions but, motivation did not increa
se the number of misconceptions. A basic error concerned subjects' ina
bility to consider events as being independent of each other. The theo
retical and practical implications of these results are discussed in r
elation to the psychology of gambling.