base rate
Underlying interest level
Base rate is the underlying frequency of something in a population, before considering any additional information.
In statistics and probability, it's the prevalence you'd expect by chance alone: The base rate for the disease is 1 in 10,000.
Ignoring base rates leads to common reasoning errors—a positive test result means little if the condition is extremely rare.
In finance, base rate can mean a central bank's benchmark interest rate.
National currency management institution
- Federal ReserveUS central banking system
- monetary policyCentral bank economic controls
- LIBORInterbank lending benchmark rate
- inflationSustained price level increase
Quantified chance of occurrence
- BayesianPrior-to-posterior probability approach
- prevalenceState of being widespread
- frequencyRate of recurrence
- proportionComparative relation of parts
population · sample · false positive · false negative · sensitivity · specificity · epidemiology · incidence
Systematic deviation from rationality
- heuristicPractical solving shortcut
- representativenessQuality of being typical
- judgmentReasoned decision-making capacity
- anchoringFastening securely to position
central bank
National currency management institution
- Federal ReserveUS central banking system
- monetary policyCentral bank economic controls
- LIBORInterbank lending benchmark rate
probability
Quantified chance of occurrence
- BayesianPrior-to-posterior probability approach
- prevalenceState of being widespread
- frequencyRate of recurrence
proportion · population · sample · false positive · false negative · sensitivity · specificity · epidemiology · incidence
cognitive bias
Systematic deviation from rationality
- heuristicPractical solving shortcut
- representativenessQuality of being typical
- judgmentReasoned decision-making capacity
- faresstandard fare, adult fare, student fare, senior fare, child fare
- hotel chargesresort fee, hotel fee, service fee, hotel tax, parking fee
- ratesroyalty, per diem, interest rates, exchange rates, percentage
- rates & feesparking fee, storage fee, service charge, subscription fee, membership fee
- taxationtax, income tax, sales tax, tax return, tax refund
- UK FinanceBank of England, pound sterling, pound, gilts, FTSE