15.071 | Spring 2017 | Graduate

# The Analytics Edge

2.3 Moneyball: The Power of Sports Analytics

## 2.3 Moneyball: The Power of Sports Analytics

### Quick Question

Suppose you are the General Manager of a baseball team, and you are selecting two players for your team. You have a budget of \$1,500,000, and you have the choice between the following players:

 Player Name OBP SLG Salary Eric Chavez 0.338 0.540 \$1,400,000 Jeremy Giambi 0.391 0.450 \$1,065,000 Frank Menechino 0.369 0.374 \$295,000 Greg Myers 0.313 0.447 \$800,000 Carlos Pena 0.361 0.500 \$300,000

Given your budget and the player statistics, which two players would you select?

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Explanation We would select Jeremy Giambi and Carlos Pena, since they give the highest contribution to Runs Scored. We would not select Eric Chavez, since his salary consumes our entire budget, and although he has the highest SLG, there are players with better OBP. We would not select Frank Menechino since even though he has a high OBP, his SLG is low. We would not select Greg Myers since he is dominated by Carlos Pena in OBP and SLG, but has a much higher salary.

## Course Info

Spring 2017
##### Learning Resource Types
Lecture Videos
Lecture Notes
Problem Sets with Solutions