Many clinical decisions are made in uncertainty. When the diagnosis is unce
rtain, the goal is to establish a diagnosis or to treat even if the diagnos
is remains unknown. If the diagnosis is known (e.g., breast cancer or prost
ate cancer) but the treatment is risky and its outcome uncertain, still a c
hoice must be made. In researching the psychology of clinical judgment and
decision making, the major strategy is to compare observed clinical judgmen
ts and decisions with the normative model established by statistical :decis
ion theory. In this framework, the process of diagnosing is conceptualized
as using imperfect information to revise opinions; Bayes' theorem is the fo
rmal rule:for updating a diagnosis as new data are available. Treatment;dec
isions should be made so as:to maximize expected value. This essay uses Bay
es' theorem and concepts from decision theory to describe and explain some
well-documented errors in clinical reasoning. Heuristics and biases are the
cognitive factors-that produce these errors.