Expected ERA vs Actual ERA

Anthony A. Perri

As many of you already know, Fantistics uses sabermetric theories to create it's player projections model. These theories are the foundation to our successful forecasting history. One of my favorite forecasting models that we monitor here at Fantistics is Expected ERA.

Expected ERA (XERA) depicts a pitcher’s "True ERA" as it bases its expectation on factors within a pitcher's control. These factors include Hits, Walks, Home Runs allowed and K’s. When you consider the inequity with the ERA calculation, specifically related to errors and base runners inherited/left, many including myself consider XERA to be a more precise gauge of ability.

Expected ERA is a term coined by two Sabermetric researchers (Gill and Reeve) who developed the following mathematical formula ((.575 * H/9 ) + (.94 * HR/9 ) + (.28 * BB/9 ) - (.01 * K/9 ) - Normalizing Factor). The normalizing factor is based on the league (typically in the .270 and .285 range)

The best way to use XERA is to compare it to the actual ERA. Using the delta between the two indicators we can make observations as to whether the pitcher’s ERA was a true gauge of his ability for the given period.

Overall, based on the MLB starting pitching universe, XERA and ERA usually are almost identical as a whole. On average, for the top 150 pitchers, both hover around 4.00.

 

Pitchers with a lower ERA than Expected

 

When I wrote this piece last year, I identified 4 pitchers whose 2006 ERA was well below their expected ERA. I went on to say that Woody Willaims, Nate Robinson, Bronson Arroyo, and Justin Verlander would be prime candidates not to achieve the same success in ERA in 2007 as they had the previous year.  I was right in all 4 situations as all 4 saw a rise in their ERA the following season (although Verlander went on to have a better season than the prior year). In 2005, I predicted that Jorge Sosa, Zack Duke, Carlos Silva, and Kevin Millwood would be prime candidates not to achieve the same success in ERA in 2006 as they had the previous year and I humbly was correct in all 4 instances again.

 

The reason I dropped the names above is not to brag or boast, but rather to show the efficiency of this indicator. Of course, 8 correct observations makes for much less than a scientific study, however XERA is a statistic that I have backtested using data since 1992, and the results are overwhelming. Pitchers who had a lower ERA than expected in an observed year by more than 50 points and also had an ERA that year which was 50 points less than their 3 year average, posted a 50 point or more rise in ERA the following season. This held true in 77% of the individual cases!

 

Here are the pitchers who had a lower than deserved ERA in 2007:
Lower ERA than Deserved    
Player XERA ERA ERA Diff Notes
Thompson,B. 5.76 4.73 (1.03) Using the similar criteria as mentioned above: Not including pitchers who did not improve their ERA in 2006 (black), and also removing the pitchers who have little significance from a fantasy standpoint; We can isolate the pitchers who are "due" for a major rise in ERA this year.

Dan Haren - sure the more to the NL should provide him with an edge, but his '07 ERA of 3.07 was almost 60 points less than what it should have been.

John Lackey had a banner season in '07, but his runner stranded percentage of .77 had him skating on thin ice. His expected ERA last year should have been in the 3.50 zone.

Mark Buehrle always worries us, as do many other low K/I ratio pitchers. Having the balls hit into play more often increases the probability of failure. Couple this with the rise in his FB/GB ratio.

Even before the health issues sidelined Kasmir this spring, we were projecting a downturn. Kaz ERA should have been closer to 4 last year.

Hernandez,L. 5.83 4.93 (0.89)
James,C. 5.01 4.24 (0.77)
Davis,D. 4.99 4.25 (0.74)
Chico,M. 5.28 4.63 (0.65)
Oswalt,R. 3.83 3.18 (0.65)
Hernandez,F. 4.42 3.78 (0.64)
Haren,D. 3.66 3.07 (0.59)
Olsen,S. 6.38 5.81 (0.58)
Weaver,J. 4.48 3.91 (0.57)
Schilling,C. 4.39 3.87 (0.51)
Arroyo,B. 4.74 4.23 (0.51)
Sampson,C. 5.07 4.59 (0.49)
Kendrick,K. 4.35 3.87 (0.48)
Lowry,N. 4.38 3.92 (0.45)
Lackey,J. 3.51 3.05 (0.45)
Vargas,C. 5.51 5.09 (0.42)
Billingsley,C. 3.72 3.31 (0.41)
Byrd,P. 5.23 4.82 (0.41)
Buehrle,M. 4.02 3.63 (0.40)
Gorzelanny,T. 4.27 3.88 (0.38)
Batista,M. 4.67 4.29 (0.38)
Kazmir,S. 3.86 3.48 (0.37)
Fogg,J. 5.31 4.94 (0.37)
Penny,B. 3.37 3.03 (0.34)
Wainwright,A. 4.02 3.70 (0.32)
Snell,I. 4.07 3.76 (0.31)
Meche,G. 3.97 3.67 (0.31)

 

The importance of this indicator can not be under estimated and typically over the stretch of a season there is reversion to the mean for a great majority of the players that are outliers. Fantistics Subscribers can find the XERA indicator built into our 2008 pitcher projection ERAs, and can also view the outliers during the season within our Player Charts database.

 

In a few days we'll highlight the guys who had an ERA which was higher than expected in 2007 (and probably will be undervalued in most 2008 draft rooms).

 

Have a great day!

-Anthony A. Perri

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