How good are people at making decisions? http://danluu.com/bad-decisions/
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Replying to @danluu
I don't think your model gives the right answers for how good/bad baseball decisions are. You should be looking at ∆p(win), not ∆runs. If you're behind, you want to take -EV but high-variance bets because it still increases ∆p(win).
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For instance, if you're behind by enough runs, it makes sense to steal even if it's -EV. Similarly, if you're ahead by enough, it makes sense to do a -EV sac bunt.
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(I've seen other more convincing analyses of quantifiably bad decisionmaking, so I still buy the general point, just being a stats pedant :P )
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I directionally agree on the steal example, but I think that in that particular case the delta between the naive calculation and your calculation should be tiny relative to conventional wisdom vs. the naive calculation.
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