What are the Odds? A Measure of the Small Sample Problems
Applied Economics Letters Volume 18, Issue 12, pages 1139-1143, January 2011
Kurt W. Rotthoff, Ph.D. Department of Economics and Legal Studies
Danielle Zanzalari, John Jasina
Decisions on whether to retain recent hires are often limited by small sample size. We empirically assess whether uncertainty in employee retention decisions could be significantly reduced by increasing sample size. Using a unique data set from professional tennis matches to measure small sample outcomes, we find little difference in giving three chances, relative to five chances, in determining innate ability.