In the 1990s, researchers Clotfelter, Cook, and Terrel analyzed data from a particular game of chance that was offered in both the Maryland and New Jersey state lotteries. In the game, participants place a bet and then guessed a three-digit number. After all bets have been placed, a three-digit number is randomly drawn by state lottery representatives. If a bettor correctly guesses the number drawn, the bettor wins a large prize. The researchers found clear evidence that lottery players bet less on a number that had won in the recent past. This finding indicates that the __________ is not at work.

Question

Quizplus · Accepted Answer

The hot-hand fallacy is the belief that a person who has experienced success with a random event has a greater chance of further success in additional attempts. The finding that players bet less on a number that had recently won suggests they do not believe in a "hot streak," indicating the hot-hand fallacy is not at work.

In the 1990s, Researchers Clotfelter, Cook, and Terrel Analyzed Data