Understanding Risk: How the Brain Processes Variance and Skewness
Author Information
Author(s): Mkael Symmonds, Nicholas D. Wright, Dominik R. Bach, Raymond J. Dolan
Primary Institution: Wellcome Trust Centre for Neuroimaging, Institute of Neurology, University College London
Hypothesis
The brain encodes the summary statistics of risk, specifically variance and skewness, in distinct neural regions.
Conclusion
The study demonstrates that the brain processes risk by separately evaluating variance and skewness, which are reflected in different areas of neural activity.
Supporting Evidence
- Participants' choices were influenced by both variance and skewness of outcomes.
- Distinct neural representations for variance and skewness were identified in the brain.
- Anterior insula activity correlated with individual preferences for skewness.
Takeaway
When making decisions about risk, our brains look at how spread out the possible outcomes are and whether there are more chances for good or bad results.
Methodology
The study used fMRI to scan participants while they made decisions based on manipulated variance and skewness of outcomes in a gambling task.
Potential Biases
Potential biases in self-reported risk preferences and the fixed strategy of one excluded participant.
Limitations
The study's sample size was relatively small, and the findings may not generalize to all populations.
Participant Demographics
24 subjects (mean age: 24; age range: 19–34; 12 males, 1 female excluded for using a fixed strategy).
Statistical Information
P-Value
p<0.05
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
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