A perceived but ultimately nonexistent correlation is known as

• A. Stereotype
• B. In-Group
• C. Illusory Correlation
• D. Out-Group

Answer: (C)

Illusory correlation is the tendency to perceive a relationship between two things when no real link exists. Our brains are pattern-seeking, and when two events happen together, especially if one is familiar or memorable, we’re likely to infer that they’re connected even if the connection is simply a coincidence. This can be reinforced by selective attention and confirmation bias—noticing examples that fit our preconceptions while ignoring those that don’t. In social thinking, this shows up as people believing a group is associated with a trait or behavior based on a few striking instances rather than on solid data, leading to biased judgments and stereotypes.

Stereotypes describe generalized beliefs about groups, but they’re not specifically about a putative relationship between two variables. In-group and out-group terms refer to social categories and biases related to belonging, not to a mistaken perception of a statistical correlation. So the notion of a perceived but nonexistent link best fits illusory correlation.