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Question: One of the most fact-filled publications you can buy is the Daily Racing Form. 72 For every horse running that day it contains about 30 facts about each of its last ten races, including the name of the jockey, location of the race, track condition, odds on the horse at post time, the winner of the race, position at the halfway mark, and so on. The reader will have hundreds of facts in hand about every horse in a particular race.
a. Experiments show that experienced bettors who use the Daily Racing Form outperform equally experienced bettors who have not been allowed to use it. Why?
b. Experiments have also shown that casual bettors who are given the Daily Racing Form and told to study it before making their bets underperform similar people who are told to choose their horses however they prefer to. Why?
c. Link your answers to these questions with what you have learned about models and heuristics.
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