A system for quantifying team strength in sports, often based on factors like margin of victory and strength of schedule, uses a mathematical model to generate ratings. For example, these ratings can incorporate the difference in points between winning and losing teams, adjusted for the relative competitive levels of the opponents faced. This approach allows for a more nuanced comparison than simple win-loss records.
These rating systems provide valuable tools for predicting future game outcomes and evaluating team performance beyond basic metrics. Historical data plays a key role in establishing the foundational parameters of such models, allowing for adjustments and refinements over time. A well-designed system offers insights into the dynamics of competitive balance within a league or sport and contributes to a deeper understanding of performance trends.