Many of us are not familiar with the odds of randomness. It therefore affects our outlook on finance.
For example: With a toss of 100 coins, heads or tails, there is a 75% chance of a streak of 6 or more. And a 10% chance of a streak of 10 or more
Look what this lack of knowledge does when we observe what analysts say about securities’ markets. Why they are up or down. You usually hear comments after market closings about events which really reflect randomness.
Athletes or sporting event progress is not the purview of this blog, but the same randomness prevails, and should be kept in mind.
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