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Stands for Player Empirical Comparison and Optimization Test Algorithm. PECOTA is BP's proprietary system that projects player performance based on comparison with historical player-seasons. There are three elements to PECOTA:
1) Major-league equivalencies, to allow us to use minor-league stats to project how a player will perform in the majors;
2) Baseline forecasts, which use weighted averages and regression to the mean to produce an estimate of a player's true talent level;
3) A career-path adjustment, which incorporates information about how comparable players' stats changed over time.
Check out the PECOTA section of the glossary for more on the system's intricacies.
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