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Clustering illusion

Clustering illusion

Overview
The clustering illusion refers to the tendency to erroneously perceive small samples from random distributions as having significant "streaks" or "clusters", caused by a human tendency to underpredict the amount of variability
Statistical dispersion
In statistics, statistical dispersion is variability or spread in a variable or a probability distribution...

 likely to appear in a small sample of random or semi-random data due to chance.

Thomas Gilovich
Thomas Gilovich
Thomas D. Gilovich is a professor of psychology at Cornell University who has researched decision making and behavioral economics and has written popular books on said subjects. He has collaborated with Daniel Kahneman, Lee Ross and Amos Tversky....

 found that most people thought that the sequence
"OXXXOXXXOXXOOOXOOXXOO"
looked non-random, when, in fact, it has several characteristics maximally probable for a "random" stream, such as an equal number of each result and an equal number of adjacent results with the same outcome for both possible outcomes.
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Encyclopedia
The clustering illusion refers to the tendency to erroneously perceive small samples from random distributions as having significant "streaks" or "clusters", caused by a human tendency to underpredict the amount of variability
Statistical dispersion
In statistics, statistical dispersion is variability or spread in a variable or a probability distribution...

 likely to appear in a small sample of random or semi-random data due to chance.

Thomas Gilovich
Thomas Gilovich
Thomas D. Gilovich is a professor of psychology at Cornell University who has researched decision making and behavioral economics and has written popular books on said subjects. He has collaborated with Daniel Kahneman, Lee Ross and Amos Tversky....

 found that most people thought that the sequence
"OXXXOXXXOXXOOOXOOXXOO"
looked non-random, when, in fact, it has several characteristics maximally probable for a "random" stream, such as an equal number of each result and an equal number of adjacent results with the same outcome for both possible outcomes. In sequences like this, people seem to expect to see a greater number of alternations than one would predict statistically
Statistics
Statistics is a branch of mathematics concerned with collecting and interpreting data. According to other definitions, it is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data. Statisticians improve the quality of data with the...

. The probability of an alternation in a sequence of independent random binary events is .5, yet people seem to expect an alternation rate of about .7. In fact, in a short number of trials, variability and non-random-looking "streaks" are quite probable
Probability
Probability is a way of expressing knowledge or belief that an event will occur or has occurred. In mathematics the concept has been given an exact meaning in probability theory, that is used extensively in such areas of study as mathematics, statistics, finance, gambling, science, and philosophy...

.

Daniel Kahneman
Daniel Kahneman
Daniel Kahneman is an Israeli psychologist and Nobel laureate, notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology....

 and Amos Tversky
Amos Tversky
Amos Nathan Tversky, was a cognitive and mathematical psychologist, and a pioneer of cognitive science, a longtime collaborator of Daniel Kahneman, and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of...

 explained this kind of misprediction as being caused by the representativeness heuristic
Representativeness heuristic
The Representativeness Heuristic is a rule of thumb wherein people judge the probability or frequency of a hypothesis by considering how much the hypothesis resembles available data as opposed to using a Bayesian calculation. While often very useful in everyday life, it can also result in neglect...

(which itself they also first proposed.) Gilovich argues that a similar effect occurs for other types of random dispersions, including 2-dimensional data such as seeing clusters in the locations of impact of V-1 flying bomb
V-1 flying bomb
The Fieseler Fi 103, better known as V-1 , colloquially know in Britain as the 'Doodlebug', was an early cruise missile used during World War II. The V-1 was developed at Peenemünde by the German Luftwaffe during the Second World War. Between 13 June 1944 and 29 March 1945, it was fired at...

s on London during World War II
World War II
World War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...

 or seeing streaks in stock market
Stock market
A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately....

 price fluctuations over time.

The clustering illusion was central to a widely reported study by Gilovich, Robert Vallone and Amos Tversky
Amos Tversky
Amos Nathan Tversky, was a cognitive and mathematical psychologist, and a pioneer of cognitive science, a longtime collaborator of Daniel Kahneman, and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of...

. They found that the idea that basketball
Basketball
Basketball is a team sport in which two teams of 5 players try to score points against one another by placing a ball through a 10 foot  high hoop under organized rules...

 players shoot successfully in "streaks", sometimes called by sportcasters as having a "hot hand" and widely believed by Gilovich et al.'s subjects, was false. In the data they collected, if anything the success of a previous throw very slightly predicted a subsequent miss rather than another success.

Using this cognitive bias
Cognitive bias
A cognitive bias is a person's tendency to make errors in judgment based on cognitive factors, and is a phenomenon studied in cognitive science and social psychology. Forms of cognitive bias include errors in statistical judgment, social attribution, and memory that are common to all human beings....

 in causal reasoning may result in the Texas sharpshooter fallacy
Texas sharpshooter fallacy
The Texas sharpshooter fallacy is a logical fallacy in which information that has no relationship is interpreted or manipulated until it appears to have meaning...

. It may also have a relationship with gambler's fallacy
Gambler's fallacy
The gambler's fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the belief that if deviations from expected behaviour are observed in repeated independent trials of some random process then these deviations are likely to be evened out by opposite...

. More general forms of erroneous pattern recognition are pareidolia
Pareidolia
Pareidolia is a psychological phenomenon involving a vague and random stimulus being perceived as significant. Common examples include seeing images of animals or faces in clouds, the man in the moon, and hearing hidden messages on records played in reverse...

 and apophenia
Apophenia
Apophenia is the experience of seeing patterns or connections in random or meaningless data. The term was coined in 1958 by Klaus Conrad, who defined it as the "unmotivated seeing of connections" accompanied by a "specific experience of an abnormal meaningfulness".In statistics, apophenia would be...

.

Clustering (or the illusion of clustering) is also used in the analysis of CSPRNG and TCP/IP Sequence Numbers:

Strange Attractors and TCP/IP Sequence Number Analysis - One Year Later

External links