Response to “A note on the standardized covariance”.

In a recent paper, Andraszewicz and Rieskamp (2014) proposed the standardized covariance as a measure of association, similarity and co-riskiness. Budescu and Bo (2017) wrote a comment on the proposed measure, in which they interpret the standardized covariance as a measure of additive association, or a “measure of disparity between the ranges of outcomes offered by two lotteries” (Budescu and Bo, 2017). In the reply to this comment, we point out that the statistical interpretation of the standardized covariance provided by Budescu and Bo (2017) is strongly linked with its cognitive interpretation. Also, in this comment, we give a cognitive interpretation to the Budescu and Bo’s (2017) analytical findings of the similarity measure for statistically independent gambles proposed by Andraszewicz and Rieskamp (2014). [ABSTRACT FROM AUTHOR]