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Placeholder Lesson:
** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
The gambler’s fallacy is the incorrect belief that past random events influence future random events.
For example, thinking a coin is “due” to land heads after several tails.
This bias misunderstands independence in probability.
It can lead to poor decisions in gambling and investing.
The fallacy arises from the desire to find patterns where none exist.