Base-rate neglect synonyms, Base-rate neglect pronunciation, Base-rate neglect translation, English dictionary definition of Base-rate neglect. n statistics the tendency, when making judgments of the probability with which an event will occur, to ignore the base rate and to concentrate on other Any investor arriving at this conclusion, however, ignores the base rate fact that IPOs are more likely to fail than to succeed. So basic neglect bias is the attempt by investors to determine the potential success of an investment in a company by contextualizing the investment in easy-to-understand bins and familiar classifications like, for instance, IPOs make money. Base-Rate Neglect is not adequately considering whether the logic for putting new information into “buckets” is correct. In the ABC case the FMP has “bucketed” Company ABC into a growth stock without adequately considering if it truly is a growth stock. The “new” information is simply the characteristics of Company ABC.