The Gambler's Fallacy

The Gambler's Fallacy is the mistaken belief that past independent events affect the likelihood of future independent events. For example, if a coin is flipped and lands on heads several times in a row, one might wrongly think tails is "due" to occur next. In reality, each coin flip is independent; the probability remains 50% for heads and 50% for tails, regardless of previous outcomes. This fallacy can lead people to make poor decisions in gambling and other areas by misinterpreting randomness and probability. Understanding this concept can help improve decision-making under uncertainty.