When 1 + 1 Doesn’t Equal 2
By Bryan Woolley, JP Wong, and Nick Skiera.
Baseball, like all sports, is exciting because of the concept of variance. No team scores the exact same number of runs every game. That is why the Dodgers (5.82 runs/game) were not 60-0 in 2020. Runs per game strongly correlates with winning percentage for obvious reasons, but a team’s variance (essentially their consistency) plays a crucial role in their ability to win baseball games
Relating to this, we came across an interesting game theory concept. Given certain properties of the run-scoring distributions, the competitor with the lower output can increase their win probability by increasing the variance in their output. Conversely, the competitor with the higher output can increase their win probability by decreasing the variance in their output. Were this to apply to baseball, lower-scoring teams could win more games by becoming more inconsistent. Of course this is all just in theory, so the requirements for it to be relevant in reality to baseball might not be met.
We will examine the importance of variance in baseball both to test the theory and to attempt to uncover interesting trends in the sport. In our analysis we find that variance plays a significant role in a team’s success, suggesting that roster and lineup construction can be optimized by going beyond mean production. So as our title proposes, 1 WAR + 1 WAR and 2 WAR might not always be worth the same amount to a team if they are produced with different consistencies. Read the rest of this entry »