re: James Harden 37 points on 8/14 shooting

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There are massive differences in talent in each draft class.

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Of course.

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So saying something like Oladipo is the number 2 pick doesn't necessarily mean he is more "talented" than someone who was drafted later a different year.

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No, but since this is the average for each draft position across 20 season, we can say ON AVERAGE the higher pick is more talented and has better performance.

And of course, there will be some positions that perform better than the preceding position (Pick 3 in this case is better than 2), but the trend is clear.