Publication | SSRN
What the Chicago Cubs Reveal about Binomial Trees and What Binomial Trees Reveal about Baseball
December 1, 2015
Many professional sports seasons end with one or more five- or seven-game series to determine an overall champion.
Stuart McCrary writes about how binomial trees commonly used to value complex derivatives can organize outcomes of a sport series, and how applying trees to baseball provides insights about the trees and about sports outcomes as well.