There is a growing body of evidence indicating that people often overestimate the similarity between characteristics of random samples and those of the populations from which they are drawn. This paper: reviews studies that have attempted to determine whether the basic heuristic employed in thinking about random samples is passive and descriptive…

Rectifies the unsatisfactory textbook treatment of the finite-sample proprieties of estimators of regression models with a lagged dependent variable and autocorrelated disturbances. Maintains that the bias of the ordinary least squares estimator is determined by the dynamic and correlation effects. (MJP)