Prediction machines will have their most immediate impact at the decision level. But decisions have six other key elements (see figure 7-1). When someone (or something) makes a decision, they take input data from the world that enables a prediction. That prediction is possible because training occurred about relationships between different types of data and which data is most closely associated with a situation. Combining the prediction with judgment on what matters, the decision maker can then choose an action. The action leads to an outcome (which has an associated reward or payoff). The
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