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Originally Posted by Slayerx
As others have said, we never actually got an explanation on what "mortal levels" actually is. However it seems reasonable to assume that power IS a factor. The way they frame the discussion when they said Universe 7 was near the bottom during the announcement for the tournament seemed to be a way of setting up the tournament with the odds feeling like they might actually be against U7.
Also they decided that those with high mortal levels would be exempt from the Tournament and the rest would need to FIGHT for their right to live. If Mortal levels valued intelligence over physical power, then that would be a really unfair set up. Its like putting a scientist in a ring with gorilla; The scientist will contribute more to world, but based on tournament logic, the gorilla is the one who is gonna get to live based on pure brute strength. So even the tournament itself implies that power is indeed valued... though i would say the rule against the use of Tools is a week point for both versions as the use of weapons and magic items could have made things even more interesting (though godly items like the earings would likely still be banned).
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While I agree that powerlevels arent the SOLE factor into mortal level, intelligence isnt the sole factor either. I'd say its a combination of both plus other factors, such as whether or not the many planets of an universe are developed or with strong fighters. So if you have a universe like 7's, where ONLY Earth has the strongest fighters, then the average power level of that universe would be pretty low.
If we take a look at the rankings, it makes sense that U11 is at the highest level and U9 at the lowest. U11 not only has strong fighters but their civilization looks pretty advanced as well. U9 has failed to develop any significant advances in their civilization, and their fighters are mediocre at best (manga).
Out of the universes exempt from participating, U12 was the one that had developed a functioning time machine in the current timeline, so it can be assumed that they're very advanced. The fighters, however, arent probably as strong as Jiren and U7's. So from this we can assume that intelligence/knowledge weights more than actual fighting power. So you have many advanced planets, even with weak fighters, then your universe would have a higher mortal level.
This is all speculation from the evidence we have, and I doubt it will ever be explained in detail how exactly Mortal Levels work, but can still explain why U7 and U6 have the strongest fighters despite not having the highest mortal levels.
Or you can just say that Saiyans are arguably the strongest race in the universe 