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    Small-sample correlations are amplified beyond their true... — Carmelics
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    Supports→Effective behavior can be aided by inaccurate judgments or cognitively adaptive illusions

    Small-sample correlations are amplified beyond their true population values, yielding an inaccurate judgment

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    Effective behavior can be aided by inaccurate judgments or cognitively adaptive ...This amplification makes correlations easier to detect, which aids learning and ...

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    For correlations of 0.5 and higher, sample sizes between five and nine...80%Small samples amplify correlations, making them easier to detect77%Small samples are subject to greater statistical variance.76%The small-sample effect inflates estimates of true correlation coeffic...75%

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    SEP: bounded-rationality
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    However, sometimes effective behavior is aided by inaccurate judgments or cognitively adaptive illusions (Howe 2011). The statistical properties of small samples are a case in point. One feature of small samples is that correlations are amplified, making them easier to detect (Kareev 1995). This fact about small samples, when combined with the known limits to human short-term memory, suggests that our working-memory limits may be an adaptive response to our environment that we exploit at differe

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