Noise: A Flaw in Human Judgment

“Kahneman’s most well-known book, Thinking, Fast and Slow, as well as his seminal work in the field, explore…how we can recognize our biases…Noise is a really cool sequel. It’s what the second book of Dune was to the first book of Dune…Noise is about the fact that while we have a lot of cognitive biases, in many cases the world is random. It’s what gamers call RNG or random number generator — a fun shorthand way to describe all the randomness in a game’s world, randomness that’s mirrored in ours. It creates this variability in our observation of the world and makes it even harder to make good decisions, because not only do we have to fix for all our biases and get all the systematic priors out of the way, but even accounting for all of that, testing the same samples six times may sometimes yield very different results.” Read more...

The best books on Making Good Decisions

Sebastian Park, Entrepreneurs & Business People