My view on randomness: Don't bet on random events repeating, just account for the possibility of randomness in events to prevent damages/fatalities.
Identifying the random elements and attributing/separating what element is associated with skill is probably the popular/common challenge,
Looking at data can maybe help identify the skill element, but sometimes it may hide it,
Now we come to another part of the equation, the person looking at the data, his whole backstory, intuition and again randomness comes into play. (Depends a lot on who is looking).
Data that conclusively separates luck and skill comes through reps. That's why it is clear who the best professional athletes are at a sport even though there may be randomness in their sport. In business, it gets trickier. Fewer reps, a lot more noise, and then the point you make about the incentives/unconscious biases of the person looking at it all. Thanks for the comment, Rahul.
My view on randomness: Don't bet on random events repeating, just account for the possibility of randomness in events to prevent damages/fatalities.
Identifying the random elements and attributing/separating what element is associated with skill is probably the popular/common challenge,
Looking at data can maybe help identify the skill element, but sometimes it may hide it,
Now we come to another part of the equation, the person looking at the data, his whole backstory, intuition and again randomness comes into play. (Depends a lot on who is looking).
Data that conclusively separates luck and skill comes through reps. That's why it is clear who the best professional athletes are at a sport even though there may be randomness in their sport. In business, it gets trickier. Fewer reps, a lot more noise, and then the point you make about the incentives/unconscious biases of the person looking at it all. Thanks for the comment, Rahul.