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Judgmental Forecasting: Cognitive Reflection and Decision Speed
Journal article   Peer reviewed

Judgmental Forecasting: Cognitive Reflection and Decision Speed

Brent Moritz, Enno Siemsen and Mirko Kremer
Production and operations management, Vol.23(7), pp.1146-1160
07/2014
DOI: 10.1111/poms.12105

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Abstract

This research analyzes how individual differences affect performance in judgmental time-series forecasting. Decision makers with the ability to balance intuitive judgment with cognitive deliberation, as measured by the cognitive reflection test, tend to have lower forecast errors. This relationship holds when controlling for intelligence. Furthermore, forecast errors increase for very fast or very slow decisions. We provide evidence that forecast performance can be improved by manipulating decision speed.
Engineering Engineering, Manufacturing Operations Research & Management Science Science & Technology Technology

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