ROC asymmetry is not diagnostic of unequal residual variance in Gaussian signal detection theory

Signal detection theory (SDT) is used to analyze yes/no judgment accuracy in many research domains of psychology. SDT yields separate estimates for response bias/criterion (c) and for sensitivity/discriminability (d'). Discrimination performance can be displayed in Receiver Operating Characteristics (ROCs) plotting hit and false alarm rates at various levels of confidence. We provide formal proof and simulations showing that asymmetric ROCs in Gaussian SDT are not exclusively diagnostic of unequal residual variance but may as well result from equal-variance models with c and d' systematically varying across subjects and/or items. Falsely attributing zROC slopes to unequal residual variance while neglecting true group-level variability introduces systematic and unsystematic statistical error. We show that ordinal regression models minimize such errors while estimating all SDT parameters and statistical criteria in a single model.