Tyler Cowen and Daniel Kahneman have each changed the way I think about the world. If you’re unfamiliar, consider it a requirement to listen to this Conversations with Tyler episode. I’ll write more about some of these ideas this week, but Kahneman’s explanation of bias and noise directly relates to what caused what and what correlates with what from last week. Bias happens with causal relationships and noise happens when we are thinking statistically. It is incredibly useful to be aware of each because as humans, this is what influences all of our decisions.
If you want more, consider Average is Over by Cowen and/or Thinking Fast and Slow by Kahneman.