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Re:Age and high-growth entrepreneurship by civilized on Sunday January 23, 2022 @06:03PM (#30051517)
No - it's statistically unsound to focus on extreme outliers, even if they account for most of the economy. Suppose a single company accounted for 99% of the economy and was founded by an 18-year-old. Would that mean that we should expect 18-year-olds to be the best entrepreneurs in general? Of course not. You can't base broad conclusions on a sample size of one, even if that one is disproportionately influential.

Look at the top 20, 50, and 100 to get a better idea of whether the top 5 observation is robust.

Re:Age and high-growth entrepreneurship by hn_throwaway_99 on Monday January 24, 2022 @12:36AM (#30054063)
It's not statistically unsound to focus on extreme outliers. In fact, if your data set contains lots of outliers that your statistics can't explain, it's more of the case that your statistics are wrong (I'm not saying the math is wrong, I'm saying you're applying the wrong model to your dataset). This is basically the whole lesson behind books like Black Swan.

I agree with the comment you are replying to. You're commenting on a website of the most successful tech incubator of all time where, at least from a quick glance, all of the top companies were founded by people in their 20s. Given the researches intro sentence of "Many observers, and many investors, believe that young people are especially likely to produce the most successful new firms" I think their conclusion is really just using an invalid viewpoint of what "the most successful new firms" means.

Re:Age and high-growth entrepreneurship by srcreigh on Sunday January 23, 2022 @10:43PM (#30053477)
This is more of a problem with statistics than with focusing on outliers.

Per your example, if something has 0 explanation for whatever has 99% of influence, it is just not a useful explanatory mechanism. That doesn't mean there isn't a good explanation.

Re:Age and high-growth entrepreneurship by civilized on Sunday January 23, 2022 @11:06PM (#30053628)
Statistics exists because people who think they have the explanation for a single important data point are very often wrong.

If you could recognize the causal networks behind a complex system the way a toddler can recognize a cat, after being shown very few examples, there would be no need for statistics.

Unfortunately, you can't. (But it doesn't stop lucky guessers thinking they can.)

Re:Age and high-growth entrepreneurship by srcreigh on Monday January 24, 2022 @01:19AM (#30054229)
Statistics is just one way to get a correct answer, no? Or it may not even be a way to get a correct answer at all. It seems more of a checking mechanism to filter out answers which are not correct.

A scientific hypothesis is correct or not independently of statistical analysis. It's true before it is verified. Statistics is just a social mechanism for demonstrating its correctness to other people (or yourself.)

It's entirely possible for someone to know they're right, actually be right, and it be uncheckable with statistics. The only difference between an outlier and a lucky guesser is knowledge. Blah blah blah anything that's measured ceases to be a good measure blah blah blah.