8 Optimal stopping

 

This chapter covers

  • Optimal stopping (aka the 37% rule)
  • Regression to the mean
  • Creating a frequency table
  • Adding a theme to ggplot2 visualizations
  • Importing and insetting images into ggplot2 visualizations
  • Adding multiple trendlines to a data series
  • Creating a derived variable from a substring

There is a popular algorithm called the optimal stopping rule—which is frequently referred to as the 37% rule and sometimes called the look-then-leap rule—that solves the problem of when to take a specific course of action versus continuing to deliberate. Here’s a common use case: Let’s say you’re a hiring manager interviewing candidates for an open role in your organization, and you’re obligated to render a yea or nay decision immediately after interviewing each candidate because there are no second chances. According to the optimal stopping rule, you should automatically pass on the first 37% of the candidates in the applicant pool and then extend an offer to the first interviewed candidate who rates higher than every previous candidate.

8.1 Loading packages

8.2 Importing images

8.3 Importing and viewing data

8.4 Exploring and wrangling data

8.5 Analysis

8.5.1 Milwaukee Bucks

8.5.2 Atlanta Hawks

8.5.3 Charlotte Hornets

8.5.4 NBA

Summary