Is it randomly decided or does it all come down to statistics?
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Typically tournament formats come as a playoff at the end of a regular season. The results of how the various teams did in the regular season determine the rankings.
For bigger events or whenever there are teams from different leagues (US college basketball for example) then teams are seeded based on a combination of factors like their record weighted against the caliber of their competition.
For the World Cup, the teams play in qualifying matches leading up to the actual event just to get on the list, but then they are assigned groups through a sort of weighted drawing(to control the odds a bit more than completely random). Each group of 4 teams plays a round-robin and at the end of it the top two teams from each group are moved into the bracket of 16 according to positions assigned before the groups were ever drawn.
For other events it can be totally random or accomplished through various drawings or even coin flips.
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