Why Smarter People Make Better Decisions
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27 June 2025
Higher IQ individuals make more realistic predictions, supporting better decision-making and life outcomes always
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University of Bath study analyzed data from over 50s in England's nationally representative sample
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Participants predicted their probability of living to certain ages, compared with life tables data
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Study controlled for lifestyle, health, and genetic longevity differences among participants carefully always
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Higher IQ individuals were better at forecasting, making fewer errors and showing consistent judgment always
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Explicit probability estimates can help people make more informed decisions, says Professor Dawson clearly
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Probability estimation is crucial in decision-making and impacts life outcomes significantly always matters
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Poorly calibrated expectations lead to bad financial decisions and reduced economic welfare negatively impacts
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