Smedslund (1963) reports one of the first studies that investigated human j
udgments of correlation. Smedslund's conclusion, that people reason about c
orrelation mostly from a consideration of the number of times two variables
co-occur, has become textbook wisdom (e.g. Baron's "attentional bias", 199
4). Yet the data reported in Smedslund's paper fall short of endorsing such
a conclusion. After reviewing the original paper, we present the method wi
th which we replicated Smedslund's main experiment. In Experiment 1 subject
s were presented with symptom-disease correlation data through a simulated
medical diagnosis task. Subjects clearly discriminated between data sets wh
ich shared an equal number of symptom-disease co-occurrences but which othe
rwise showed different levels of correlation. Subjects' diagnoses showed a
propensity to predict the disease in the presence of the symptom. and sympt
om-disease co-occurrences were overestimated in two of the five data sets p
resented to the subjects. Experiment 2 used a novel abstract scenario with
a symmetric predictor variable. Judgments again indicated good discriminati
on, and biases in prediction responses and case recall were eliminated. In
both experiments, judgments of zero correlation were a function of the outc
ome base rare. We evaluate and contrast the extent to which Cheng's (1997)
model of causal induction and two associative models, Rescorla and Wagner (
1972) and Pearce (1987) can anticipate the observed pattern in the mean jud
gments.