Why IQ Alone Will Not Save You from Bad Decisions

Do you consider yourself to be very smart?

Full disclosure: I failed a test designed to assess rational decision-making, even though I consider myself quite intelligent!

One such test involves the following scenario:

Bob is sitting in a noisy bar watching Susan, who is eyeing Pablo. Pablo is single; Bob is married.

Question: Is a married person looking at an unmarried person?

• Yes
• No?
• It cannot be determined.

I answered, "It cannot be determined," and 80% of people who take this test make the same choice. So, I am in good company, right?

Well, not exactly.

According to Keith Stanovich and Richard West , my answer was wrong because I am what he calls a "cognitive miser."

What is a cognitive miser?

Stanovich and West explain that cognitive misers are people who expend as little mental effort as possible to solve problems. They rely on intuitive thinking, which can lead to incorrect conclusions.

For example, in the scenario above, a married person (Bob) is indeed looking at an unmarried person if Susan is single,, making "yes" the correct answer; or if Susan is married (since he is watching Pablo) still making "yes" the correct answer.

This highlights a crucial point: intelligence does not necessarily guarantee good decision-making.

?The Case for Rationality

Although intelligence tests (IQ) are commonly used to measure cognitive abilities, they do not measure rationality. This article explores the distinction between intelligence and rationality and advocates for developing a Rationality Quotient (RQ) test to address this gap.

Intelligence vs. Rationality

IQ tests assess cognitive skills such as memory, problem-solving, and pattern recognition. Rationality, however, is the ability to make decisions that align with our goals and are based on evidence. While intelligence measures cognitive performance, rationality evaluates judgment and decision-making. As such, knowledgeable people can, and often do, make irrational choices.

Why IQ Tests Do not Predict "Dumb" Decisions

IQ tests fail to assess rational thinking, particularly the ability to avoid cognitive biases and make sound decisions under uncertainty. The real-world consequences of irrationality can be severe: poor medical decisions leading to harm, financial misjudgments causing bankruptcy, and legal errors that allow criminals to go free.

The Need for a Rationality Quotient (RQ)

An RQ test would measure rational thinking directly and could be divided into two components:?

• Fluid rationality: cognitive processes that facilitate rational thought.
• Crystallized rationality: knowledge structures that either support or hinder decision-making

Avoiding cognitive biases, such as myside bias (where individuals favor their perspective), is essential for rational decision-making. Even the most intelligent individuals are susceptible to these biases because intelligence alone does not guarantee rational thinking.

Tools to Measure Rationality

• Cognitive Reflection Test (CRT): measures the ability to override intuitive but incorrect answers.
• Myside Bias Tasks: assess whether people can avoid egocentric thinking

Education and Policy Implications

Incorporating measures of rationality into education could improve critical thinking among students and lead to more rational decision-making in educational policies.

StrengthMakerZ says Act Now!

There is an urgent need to develop and apply RQ tests alongside IQ tests.

By measuring rationality, we can enhance both individual decision-making and societal outcomes, ensuring that intelligence is complemented by sound judgment.