Fooled by Randomness

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Fooled by Randomness Book Report Eric Chiang BUSI_Operations Management Azusa Pacific University 1) Provide a general overview of the book, focusing on insights that resonated with you. Did you generally agree or disagree with the author's premise. In “Fooled by Randomness,” Nassim Nicholas Taleb focuses on human being's emotional attachment to success stories, which results in our misconceptions and inability to judge probability. In the first chapter, he stresses how luck, as well as random events determine the wealth and success of an individual. Luck can help him to gain mass wealth or more probably, take it away. To an outsider, specifically all those who are "fooled by randomness," attribute the success of a wealthy individual his intelligence and diligence. Luck cannot be attributed to success, and hard work and skill should be. Some insights that resonated with me is that people do not learn that they do not learn. People will use contradictory mental rationality and thinking processes and come to a conclusion, which solid evidence points to otherwise. People base their current decisions on past events that are in no way similar to their own situation. Another insight is that rare events happen, but most people are not prepared for "black swans." This concept says that we selectively see white swans, the success stories, but fail to see the black swans, the stories that have followed the path of the success story and failed. Overall, I agree with Taleb's premise of how the majority of people are "fooled by randomness." Most of us are so fixed on the idea of succeeding, that we become so delusional and lose sight of the reality that the odds of duplicating that success are very slim. The best thing we can do to hopefully ensure success is to work hard and gain the necessary skills required.
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