Kahneman and tversky (1973) asked participants to make judgments about the likelihood that people with certain characteristics were lawyers or engineers. these participants were also told the proportion of people in the overall population who were lawyers or engineers. in this situation, participants:

In this situation, participants:

Believed in diagnostic information but they simply didn't pay attention to the base rate.

Explanation:

Kahneman and Tversky did experiments in the fields of psychology. The base rate is such a phenomenon in the field of psychology which tells us that certain number of population will show certain characteristics. So, in our case the base rate is the information that proportion of people in the overall population who are lawyers or engineers.But the participants made judgments about the likelihood that certain people with certain characteristics were lawyers or engineers.