- Originally developed by Bill James
- Simple formula: \(\text{Winning Percentage} = \dfrac{Runs Scored^2}{Runs Scored^2 + Runs Allowed^2}\)
- Gives an indicator of how lucky a team was
- Above expectation: lucky
- Below expectation: unlucky
- Not a perfect estimator, but usually within 3 or 4 games for the majority of teams
- There are usually a few outliers far from their expectation, like in any distribution