Looking at Clemson and Maryland provides a pretty good dichotomy of the two sides of the luck equation:
Maryland is second in the nation in luck. They are 11-4 and have no wins by more than 12 points despite playing the 262nd hardest schedule in the country. They have as many losses by fewer than 10 points (2) as they do by 20+ (2).
Clemson on the other hand is 335th in the nation in luck. They are 9-7 overall. They have won each of the 9 games by 8+ points and 7 of the 9 have been by double digits. 6 of the 9 have been won by more than 15 points. Of their 7 losses 4 of them have been by one possession (3 or fewer points), and only two have been double digit losses.
It's just an example but pretty much encapsulates the extremes and reasonable application of the luck quotient.
Furthermore this probably describes why people on here think Clemson is awful (aside from the eye test of actually watching that horrific game last night). Clemson is 80 spots higher on KenPom because over the course of 10,000 seasons, Clemson would be better than Maryland in a large number of them. This is further substantiated by the efficiency numbers that KenPom uses and is the basis for the entire system. Despite being 9-7 and Maryland be 11-4, Clemson would beat Maryland probably 65% of the time they played (the one matchup for the season is in Death Valley and Clemson has an 80% shot of winning with an average score of 69-60).
The fun part is that while KenPom is good for projections, every game and season is only played once so every now and then you have your 1 in 10,000 season and make noise throughout the year.