as discussed at this site: http://kenpom.com/stats.php ? I'm trying to figure out how to factor in the spread.
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I'd recommend an abundance of caution when using so-called "Pythagorean" expectation or winning percentage in the manner you've described.
A precondition for using a statistic predictively should be to be demonstrate that it can be useful descriptively. For NCAA basketball, especially in the early season, I'm not convinced that even so weak a requirement has ever been met.
Still, even were we to grant that PWP serves an adequate descriptor of expected prior win percentage conditioned on an observed numbers of points for and points against, we'd still need to account for strength of schedule. In NCAA BB, especially near the beginning of the conference season, PWPs will be based heavily on performance versus non-conference opponents, the relative strengths of which may or may not be comparable across teams.
It doesn't really do much for us quantitatively to be able to state, "Team X should have gone 11-4 against its last 15 conference and non-conference opponents but really went 9-6, while its opponent Team Y should have gone 9-6 against its last 15 conference and non-conference opponents but really went 11-4" when X and Y have few opponents in common. Now sure one might try to use PWP to qualitatively determine which teams might be under or overvalued by the market, but that's a long way from using PWP to create objective forecasts of future win probabilities.
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