These are the raw breakthroughs I extracted after reading {Noise} by {Daniel Kahneman, Olivier Sibony & Cass R. Sunstein} . The hidden flaw in human judgment that costs billions in enterprise value . Only what eliminates unwanted variability from decisions .
Noise is the invisible twin of bias that organizations ignore . Bias is directional error , while noise is random variability . Two identical criminal cases or insurance claims receive wildly different verdicts depending solely on the judge's mood or the weather outside .
Occasion noise corrupts individual decision consistency . The exact same expert makes conflicting assessments when presented with the same data on a Monday morning versus a Friday afternoon . Human judgment fluctuates constantly due to fatigue and hunger .
Simple decision rules and algorithms consistently outperform human experts . Human intuition thinks it captures subtle nuances , but it mostly captures noise . Linear models with fixed weights produce more accurate , repeatable decisions every time .
Decision hygiene sanitizes corporate evaluation processes . Sequencing information independently , aggregating independent judgments before discussion , and using relative comparisons drastically reduces judgment variability .
