From Numbers to Gist: How Graphs and Charts Improve Numerical Cognition and Financial Decision Making

Abstract

Numeracy is the ability to understand, manipulate, and make sense of numerical information. It is crucial for everyday decision making that involves dealing with numbers. In this study, we tested whether we can help people make better choices in monetary lotteries by communicating numerical values (i.e., payoffs and probabilities) using visual aids. We also checked whether presenting this information in a visual form reduces math-related anxiety and global affect negativity. Participants (N = 210) made choices in ten monetary lotteries accompanied with visual aids (experimental condition) or without visual aids (control condition). After the lottery task, participants completed questionnaires measuring experienced emotions and numerical skills. We found that in a visual aid condition, participants who were relatively less educated scored significantly higher in a lottery task (made more expected value consistent choices) in comparison to those in the control condition. Moreover, participants in the visual aid condition reported significantly lower intensity of negative emotions after the lottery task than those in the control condition. We argue that visual aids are a promising tool for future learning, and their simplicity and friendly format can positively influence people's decisions in situations involving risk in health, finance, or in a school context.