Underestimating correlation from scatterplots

Eighty subjects estimated the correlation coefficient, r, for each of 13 computer-printed scatterplots. Making judgments were 46 students in a graduate-level statistics course and 34 faculty and graduate students in a department of psychology. The actual correlation values ranged from .010 to .995, with 200 observations in each scatterplot and with the order of scatterplot presentation randomized. As predicted, subjects underestimated the degree of actual correlation. Also as predicted, but with substantial moderation by a method-of-presentation factor, this underestimation was most pronounced in the middle of the correlational range-between the 0 and 1 extremes. Though perception of correlation was shown not to be veridical (i.e., in terms of r), little support was given one alternative view-its being in terms of r²