Michael J. Roszkowski

Effects of “Framing” on measures of risk tolerance: Financial planners are not immune

Abstract Prospect theory suggests that describing the objective risk inherent in a situation in terms of how much can be “gained” will lead to risk avoidance, whereas describing the same exact situation in terms of the potential “losses” to be suffered leads to risk-seeking behavior. This effect has been called “framing.” The present study investigated whether this bias occured among a professional group that deals with financial risk as part of their work. The results show that financial planners are not immune to the framing bias.

BELIEVE IT OR NOT! LONGER QUESTIONNAIRES HAVE LOWER RESPONSE RATES

The effects of questionnaire length on response rate and response bias were examined by conducting a mail survey of 8534 persons taking “distance education” courses in insurance and financial planning. In 14 replications, persons were randomly assigned to receive a long or short course evaluation questionnaire. Response rate for the short form averaged about 28% higher than for the long form, and was significantly higher in all 14 replications. A measure of course satisfaction appearing on both questionnaires showed no significant differences between the long and short form in 12 of the 14 replications. The results suggested that biased measurement of consumer satisfaction does not necessarily occur on a long questionnaire with a relatively low response rate.

Investors' risk tolerance and return aspirations, and financial advisors' interpretations: A conceptual model and exploratory data

Many resources available to aid financial services professionals emphasize investment products rather than client characteristics. Financial advisors can use various resources to review quantitative details about investment products, for example, investor-clients’ previous investments, past performance of particular investment products, ratings of investment products presently available in the market place, and so on, but have little more than intuitive, subjective judgments as a basis for understanding clients’ investment needs and aspirations relevant to their investment decisions. In Etzioni’s terms, financial services professionals have a wide array of resources concerning “Logical/Empirical” (L/E) factors but comparatively few systematic techniques or guidelines for accurate assessment of clients’ “Normative/Affective” (N/A) attributes.(5*6’ The authors address these practical matters in the context of (a) Heider’s contention that scientific psychology can benefit from analysis of commonsense psychology beliefs, (b) person perception theory, and (c) problem solving

Validity and Temporal Stability Issues Regarding Two Measures of Computer Aptitudes and Attitudes

Psychometric information regarding the Computer Aptitude, Literacy, and Interest Profile and the Computer Attitude Scale was obtained from an NSF retraining project preparing computer science teachers for the secondary school level. Data address: (1) pre-/post-training stability; and (2) validity information involving (2.a.) course achievement predictions, (2.b.) CALIP-CAS interrelationships, and (2.c.) intra-instrument relationships.

Temporal stability and predictive validity of self-assessed hand preference with first and second graders

The test-retest reliability and predictive validity of a five-item hand preference questionnaire (writing, drawing, throwing a baseball, brushing teeth, and cutting with scissors) were investigated in a sample of 80 children attending first and second grade. After 1 month, 81% of the second choices were the same as the first choices. There were interitem differences in the reliabilities of the five items. Writing and drawing hand exhibited the greatest degree of temporal stability. Writing hand was the one task which was significantly related to visual field bias as indexed by a face perception task.

Peripheral laterality, field independence, and academic achievement: A reexamination of their interrelationship

The interrelationship between peripheral laterality, field independence‐dependence (FID), and academic achievement was studied in a sample of 58 third graders. The students were administered the D‐K Scale of Lateral Dominance and the Childrens Embedded Figures Test. Scores on these two tests were related to existing educational test data, namely, to scores on the Otis‐Lennon IQ scale (administered to these students when they started first grade) and to intelligence and academic achievement scores on the Educational Development Series (administered at the beginning of third grade). The results indicated that (a) crossed dominance is a common condition; (b) atypical peripheral laterality, such as mixed dominance and crossed dominance, is not indicative of lower levels of intelligence or academic achievement; (c) no aspect of peripheral laterality seems to be associated with FID; and (d) FID bears a relationship to academic achievement, but not when one controls for intelligence.

The One-Month Temporal Stability of Children's Self-Reported Hand Preferences

An investigation was conducted of the one-month temporal stability of the Raczkowski, Kalat, & Nebes (1974) item pool for measuring self-reported hand preference. The subjects were 267 children, ranging in age from 8 through 14. On the aggregate, the most reliable measures were hand preferences for writing, drawing, and throwing a baseball, which showed a reliability comparable to that found with adult samples. The reliabilities of the remaining items were somewhat lower, although still acceptable for inclusion in a questionnaire. Two activities—striking a match and using a tennis racket—were not performed by a large portion of the sample, and should not be included in a childrens hand-preference questionnaire.

Seasonal variations in the birth of left-handers: another look

An attempt was made to replicate a reported seasonal variation in the birth of left-handed females. The observed number of births per month (as well as season) did not depart from the number expected by chance. This is the second failure to observe the reported overrepresentation of November births.

Jaynes' chimeric faces: Another look into the mirror

Abstract In The Origin of Consciousness in the Breakdown of the Bicameral Mind, Jaynes (1976) presented a technique—involving the selection of the happier of two line-drawing chimeric faces—that is theorized to measure hemispheric laterality. Certain imperfections in the published stimuli have led some critics to question the tasks validity, while others maintain that even the flawed stimuli are measuring some aspect of laterality. In this study, further data are presented to show that this task, despite its inherent biases, is still sensitive to differences in perception between left-handers and right-handers. The implications of this sensitivity are discussed.