Y. Kareev et al., THROUGH A NARROW WINDOW - SAMPLE-SIZE AND THE PERCEPTION OF CORRELATION, Journal of experimental psychology. General, 126(3), 1997, pp. 278-287
A theoretical analysis (Y. Kareev, 1995b) of the sampling distribution
of correlations led to the surprising conclusion that the use of smal
l samples has a potential advantage for the early detection of a corre
lation. This is so because the distribution is highly skewed, and the
smaller the sample size, the more the distribution is skewed. This art
icle describes 2 experiments that were designed as empirical tests of
this conclusion. In Experiment 1 (N = 112), the authors compared the p
redictions of participants differing in their working-memory capacity
(hence in the size of the samples they were likely to consider). In Ex
periment 2 (N = 144), the authors compared the predictions of particip
ants who viewed samples of different sizes, whose size was determined
by the authors. The results fully supported Y. Kareev's conclusion: In
both experiments, participants with lower capacity (or smaller sample
s) indeed perceived the correlation as more extreme and were more accu
rate in their predictions.