Tuesday, November 17, 2009

TTTTT what is next, T or H? (2 - Films)

Today's stories are on people who select possible blockbusters before a film is produced.

Sherry Lansing, who ran Paramount with great success for many years, had helped Paramount win many Best Picture awards, including Forrest Gump, Braveheart and Titanic. Then Lansing was dumped by Paramount after " a long stretch of underperformance at the box office". During Lansing's last 6 years, the market shares of Paramount Motion Pictures Group were 11.4, 10.6, 11.3, 7.4, 7.1, 6.7. Her boss, Sumner Redstone panicked and she decided to leave.

Sherry Lansing was lucky at the beginning and bad luck at the end. One the other hand, we have Mark Canton. Canton was criticized for be "incapable of distinguishing the winners from the losers". He left when he departed films such as Men in Black ($589m), Air Force One ($315m), Anacoda ($137m).

What do we learn from these two stories?

Let me explain it this way. Say you are good at math and your average score is 80/100. Does that mean you won't score 60 or even below? Is this string of scores possible: 90 92 80 72 61 85? What would your teacher or parent think after they know the scores 90 92? What would your teacher or parent think after they know the scores 90 92 80 72 61?

My point is clear. We can't tell your true performance from one or two tests. However, over the long run, the average of your scores does tell us something.

Now, can you make a guess of what I mean by the title of this post?

Source: The Drunkard's Walk: How Randomness Rules Our Lives (Leonard Mlodinow, available at Kinokuniya)

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