Comments on: Statistics and basketball http://uzair.nairang.org/articles/2009/03/28/statistics-and-basketball/ Where Uzairs Roam Mon, 23 Jan 2012 00:32:32 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Uzair http://uzair.nairang.org/articles/2009/03/28/statistics-and-basketball/comment-page-1/#comment-32720 Uzair Sat, 04 Apr 2009 08:12:11 +0000 http://uzair.nairang.org/?p=319#comment-32720 <p>Another example of how misleading these stats can be: http://www.sonicscentral.com/apbrmetrics/viewtopic.php?t=2166&sid=7204824dc5a5d0b3ab4a3be8033fc02f</p> <p>As for your question about whether this same argument holds for the use of advanced statistical techniques in pricing derivatives...no. Derivative pricing theory is based entirely on replication arguments; that is, given that some instruments in the market trade at certain prices, what price would some other instrument have to trade at in order to be consistent. This is also why it's practically impossible to naively make money with derivatives -- you have to venture away from risk-neutral pricing, making assumptions and approximations that are correct on average.</p> Another example of how misleading these stats can be: http://www.sonicscentral.com/apbrmetrics/viewtopic.php?t=2166&sid=7204824dc5a5d0b3ab4a3be8033fc02f

As for your question about whether this same argument holds for the use of advanced statistical techniques in pricing derivatives…no. Derivative pricing theory is based entirely on replication arguments; that is, given that some instruments in the market trade at certain prices, what price would some other instrument have to trade at in order to be consistent. This is also why it’s practically impossible to naively make money with derivatives — you have to venture away from risk-neutral pricing, making assumptions and approximations that are correct on average.

]]> By: syed husain http://uzair.nairang.org/articles/2009/03/28/statistics-and-basketball/comment-page-1/#comment-32631 syed husain Wed, 01 Apr 2009 09:11:55 +0000 http://uzair.nairang.org/?p=319#comment-32631 <p>I was never able to figure out the /- rating system. The bulls are pretty much screwed no matter what spot, 7 or 8, they end up in. Actually I think the bulls are better off playing against the Celtics, at least they can lose to the champs, plus if Garnett is out they might actually win a game or two. If they get to the 2nd round of the playoffs I'm gonna splurge $300 and get the NBA channel.</p> I was never able to figure out the /- rating system. The bulls are pretty much screwed no matter what spot, 7 or 8, they end up in. Actually I think the bulls are better off playing against the Celtics, at least they can lose to the champs, plus if Garnett is out they might actually win a game or two. If they get to the 2nd round of the playoffs I’m gonna splurge $300 and get the NBA channel.

]]>