Something that occured to me while reading this post:
In a given situation, some people who are not at the bleeding edge of finance in general will be well placed to beat the market in a way we would tend to think of as due to skill rather than luck.
In the coinflip example, the people who correctly predict the sequence do so through luck. We call the sequence random because we are unable to model the process which generates it, and we call it luck when they are able to predict it because they don't know how to model it either. In the case of detecting... (read more)
Something that occured to me while reading this post:
In a given situation, some people who are not at the bleeding edge of finance in general will be well placed to beat the market in a way we would tend to think of as due to skill rather than luck.
In the coinflip example, the people who correctly predict the sequence do so through luck. We call the sequence random because we are unable to model the process which generates it, and we call it luck when they are able to predict it because they don't know how to model it either. In the case of detecting... (read more)