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The concept of practical intelligence reflects the idea that there might be some ability besides general mental abilities (g), some street smarts or common sense that predicts how successfully individuals handle situations in their actual lives in the form of appropriate responses, given facts and circumstances as they are discovered, and considering a person's short- and long-range goals.

This definition of practical intelligence is in some ways different from the usual conception and measurement g. First, unlike tasks assessing g, tasks for practical intelligence aim at the individual's own long- and short-range goals and are usually of the individual's own intrinsic interest, rather than being formulated by others. Second, the task is encountered during a situation connected to the individual's ordinary experience; and, because it is quite uncommon in classic assessments of g but rather ordinary in real life, those facts of the situation as they are discovered may not suffice to make well-informed decisions and may change during exposition to the problem at hand. Finally, although the situation is oftentimes not well-defined, there is more than one possible correct answer and more than one method of correct solution.

Approaches to Practical Intelligence

Given the rather wide and situation-specific definition of practical intelligence, the construct has been addressed via different approaches, namely practical know-how, practical mathematics, practical planning, practical presupposition, social judgment, and prototypes of practical intelligence.

Practical know-how refers to solving tasks such as repairing machines or navigating the ocean without appropriate information such as formal education, technical manuals, or specialized tools. The most prominent form of practical know-how is tacit knowledge, practical know-how that usually is not openly expressed or stated and must be acquired in the absence of direct instruction. Frequently, tacit knowledge is further classified by its focus (i.e., how to handle oneself, others, and one's task), but measures addressing these different foci usually load onto a common factor.

Practical mathematics refers to street mathematics, that is, mathematical calculations undertaken in everyday life that differ from the abstract mathematics formally taught in schools and that are oftentimes conducted in forms of mental shortcuts, such as when searching for the best buys in supermarkets or filling orders of different quantities with minimal waste.

Practical planning refers to how people organize their everyday activities and reorganize when something goes wrong. Thus although everyone will have a routine of getting up in the mornings and getting ready to work, the effectiveness of different strategies used to react to problems, such as a failed alarm clock, may differ.

Practical presupposition refers to concept learning in everyday situations that allows individuals to discover regularities in their environment, such as general ideas about the likely preferences, decisions, and actions of individuals from different groups.

Social judgment can also be treated as an aspect of practical intelligence. Given the social nature of our lives, practical intelligence may be reflected in the attainment of transactional goals and in the individuals' adaptation to their social environments, that is, their success at meeting the requirements of diverse social roles.

Prototypes of practical intelligence refers to a conceptualization introduced by Ulric Neisser, who argued that it was not possible to define intelligence as any one thing. Instead, he suggested defining practical intelligence as the extent to which an individual resembles a prototypical person who would be an ideal exemplar of the target concept.

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