Do the changes in currencies and values of variables (eg. prices of ball and bat) have a difference on the results of the Cognitive Reflection Test? I may have a question that "a ball and a bat together cost Rs 1100, and the bat is Rs. 1000 more than the ball. What is the cost of the ball?" Would such a question distort the results?
Dear Piyush,
According to my understanding a standardized test would not suffer from the change in question.
Frederick (2005), studied the score of the cognitive reflection test (CRT) how it explains individual's decisionmaking and found that CRT scores are predictive of the types of choices that feature prominently in tests of decision-making theories, like expected utility theory and prospect theory.
In his tests of time preference Frederick (2005) found that people who scored higher on the CRT were generally more .patient.; their decisions implied lower discount rates. For short-term choices between monetary rewards, the high CRT group was much more inclined to choose the later larger reward. It appears that greater cognitive reflection fosters the recognition or appreciation of considerations favoring the later larger reward. In the test of risk preference
Frederick (2005) found that in the domain of gains, the high CRT group was more willing to gamble, particularly when the gamble had higher expected value. For items involving losses, the high CRT group was less risk seeking; they were more willing accept a sure loss to avoid playing a gamble with lower (more negative) expected value. Although discount rates and perceived utilities are individual, Frederick.s (2005) findings are so strong that they indicate that people with higher cognitive abilities are more capable in making optimal decisions. Read more from this Finnish study: http://epub.lib.aalto.fi/en/ethesis/pdf/12150/hse_ethesis_12150.pdf
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