Clustering Illusion occurs where patterns are erroneously pulled from random events, particularly with small data-sets with inherent random distributions.
Errors arise from our natural inclination to create order from chaos
Clustering illusion can lead us to make faulty judgments and decisions based on incomplete or misleading information. Humans have a natural tendency to under-account for variability and overestimate significance. Often, meaning is falsely arrived at despite small sample sizes.
Strategies to avoid Clustering Illusion
- Seek more information and evidence before making judgments or decisions based on limited data.
- Consider alternative explanations and hypotheses for the observed patterns or trends.
- Use appropriate statistical methods to analyze data and test hypotheses.
Cluster illusion is a bias that can affect our perception and interpretation of random data. We may see patterns or trends that are not reality, and make faulty judgments and decisions based on them. To avoid clustering illusion, we need to be more critical and careful when dealing with data to support our conclusions.
Gambler’s fallacy
Patagonia Picnic Table Effect