I am confused between the explanation in the CFA book and schweser. Shcweser describes categorization as the bias of emphasizing on how an idea is first categorized (which seems to me similiar to representativeness bias).
However in the curriculum, talks about this bias differently. Categorization bias is the bias resulting from difficulty arising from coming up with a search set.
“When solving problems, people gather information from what they perceive as relevant search sets. Different problems require different search sets, which are often based on familiar categorizations. If it is difficult to come up with a search set, the estimated probability of an event may be biased. For example, if an American is asked to come up with a list of famous baseball players and a list of famous soccer players, the list of soccer players is likely to be quite short. This assignment might lead the American to erroneously conclude that there are fewer famous soccer players than baseball players.”
Can someone kindly explain to me what categorization bias really means and why does it seem different under the two books?
However in the curriculum, talks about this bias differently. Categorization bias is the bias resulting from difficulty arising from coming up with a search set.
“When solving problems, people gather information from what they perceive as relevant search sets. Different problems require different search sets, which are often based on familiar categorizations. If it is difficult to come up with a search set, the estimated probability of an event may be biased. For example, if an American is asked to come up with a list of famous baseball players and a list of famous soccer players, the list of soccer players is likely to be quite short. This assignment might lead the American to erroneously conclude that there are fewer famous soccer players than baseball players.”
Can someone kindly explain to me what categorization bias really means and why does it seem different under the two books?