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Trust Me, The Financial World Will Change Forever If Wall Street Starts Analyzing Financial Data Like We Do Baseball Statistics: Miguel Cabrera

The Detroit Tigers' star player Miguel Cabrera's baseball batting stats (he was in the news couple days ago) is discussed here to illustrate the meaning of Einstein's idea of a "work function", outside physics. Cabrera's four game stretch from May 19, 2013 to May 23, 2013, has been the topic of discussion in the baseball world, and also the subject of an interesting video clip (home run GIF).

It is shown here that an understanding of the significance of the high batting average in this four game stretch will also lead to a better understand of many other complex problems in the business world, and in the so-called "soft sciences", where we now use simple y/x ratios to make sense of our (x, y) observations. However, this focus of the behavior of the y/x ratio has led to a general lack of appreciation of the nature of the underlying x-y relation, which can be either linear (of the type y= hx +c, as in many commonly observed in many problems) or nonlinear (y = m*x^n*exp(-ax) as in the traffic fatality problems). The reason for the often bewildering variation in the y/x ratio can be understood if we pay attention to the nonzero intercept c which appears in many problems, as we can appreciate from an analysis of the baseball batting stats. This nonzero intercept is shown to be related to the missing hits in baseball and is also related to the work function conceived by Einstein to explain the phenomenon known as photoelectricity.

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