Reader,
How’s the month of March going for you? Reply and write one good/sad thing that has happened to you so far.
Before that, let me know tell you something about a thing called Noise.
Noise
According to Daniel Kahneman, “In the mathematics of accuracy, there are two types of error which are equivalent. There is the average of error, which is bias, and there is the variability of error, and that’s noise.”
While bias tends to receive a lot of attention, noise can also cause a range of issues. In order to fully comprehend errors in judgment, we must consider both bias and noise.
Noise, which is often overlooked in organizations, can lead to poor decision-making.
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What do I need to know?
There are two types of Noise that are observed. Occasional and System Noise.
Occasional noise refers to random fluctuations that occur from time to time in a system. This type of noise can be difficult to predict and can have a significant impact on the accuracy of judgments and decisions made within the system.
On the other hand, systemic noise refers to persistent and predictable sources of error within a system. This type of noise can be anticipated and accounted for in order to improve the accuracy of judgments and decisions.
Notes
Occasional noise:
Random fluctuations that occur from time to time within a system
Difficult to predict
Can have a significant impact on the accuracy of judgments and decisions
Systemic noise:
Persistent and predictable sources of error within a system
Can be anticipated and accounted for
Can be addressed in order to improve the accuracy of judgments and decisions
References & Studies: -
https://behavioralscientist.org/a-conversation-with-daniel-kahneman-about-noise/