Communication of uncertainty in weather forecasts
AbstractExperimental economics methods were used to assess public understanding of information in weather forecasts and test whether the participants were able to make better decisions using the probabilistic information presented in table or bar graph formats than if they are presented with a deterministic forecast. We asked undergraduate students from the University of Exeter to choose the most probable temperature outcome between a set of “lotteries” based on the temperature up to five days ahead. If they choose a true statement, participants were rewarded with a cash reward. Results indicate that on average participants provided with uncertainty information make better decisions than those without. Statistical analysis indicates a possible learning effect as the experiment progressed. Furthermore, participants who were shown the graph with uncertainty information took on average less response time compared to those who were shown a table with uncertainty information.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38287.
Date of creation: 2012
Date of revision:
experimental economics; uncertainty; decision making; bar graph; table;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-CBE-2012-05-02 (Cognitive & Behavioural Economics)
- NEP-EXP-2012-05-02 (Experimental Economics)
- NEP-FOR-2012-05-02 (Forecasting)
- NEP-UPT-2012-05-02 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William Remus, 1984. "An Empirical Investigation of the Impact of Graphical and Tabular Data Presentations on Decision Making," Management Science, INFORMS, vol. 30(5), pages 533-542, May.
- Izak Benbasat & Albert S. Dexter, 1985. "An Experimental Evaluation of Graphical and Color-Enhanced Information Presentation," Management Science, INFORMS, vol. 31(11), pages 1348-1364, November.
- Edward J. Lusk & Michael Kersnick, 1979. "The Effect of Cognitive Style and Report Format on Task Performance: The MIS Design Consequences," Management Science, INFORMS, vol. 25(8), pages 787-798, August.
- Winett, Richard A & Kagel, John H, 1984. " Effects of Information Presentation Format on Resource Use in Field Studies," Journal of Consumer Research, University of Chicago Press, vol. 11(2), pages 655-67, September.
- Cardinaels, Eddy, 2008. "The interplay between cost accounting knowledge and presentation formats in cost-based decision-making," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 582-602, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.