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Originally Posted by BuddyBear
On the other hand, if you had something like in the NFL, home dogs who were home favorites the week before and lost SU are 142-113 over the past two decades now you have something to work with. First, you have a huge sample (N=255 games).
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FYI, given a result such as this (142-113 at 10/11 odds) it would
not be statistically sound to conclude that one had a
profitable strategy at even the 95% confidence level. A level that is almost certainly woefully inadequate for examining numerous "situational trends". Stanford Wong, for one, advocates using somewhere between a 99% and 99.9% confidence level. In fact, the confidence level in this case would only be 84%.
For 95% confidence one would need to be at 147 wins, for 99% 153 wons, and for 99.9% about 159 wins.
Given the paucity of games in the NFL, it's exceptionally difficult for statistical analysis to yield robust results for anything but the most general of "situational trends".