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Social and Behavioral Sciences

Honors Projects in Finance

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Cost Of Winning: What Contributing Factors Play The Most Significant Roles In Increasing The Winning Percentage Of A Major League Baseball Team?, Patrick Tartaro Apr 2012

Cost Of Winning: What Contributing Factors Play The Most Significant Roles In Increasing The Winning Percentage Of A Major League Baseball Team?, Patrick Tartaro

Honors Projects in Finance

Over the past decade, discussions of competition disparity in Major League Baseball have been brought to the forefront of many debates regarding the sport. The belief that "large market" teams such as the New York Yankees buy their championships through acquiring star talent at high prices has become a common belief of many followers of the game. This research will answer the pressing question, "What are the most significant factors that correlate to a Major League Baseball Team’s winning percentage?”. I used stepwise regression to identify factors significantly related to winning percentage. Interestingly enough, payroll is not a significant factor …