Resolved: Is DeltaOdds the difference between Odds_2 and Odds_1 or the quotient between Odds_2 and Odds_1?
Usually with "Delta" we mean the difference between two objects. Taking the example of the video, Odds_2 = 1.042 * Odds_1 = e^(0.042) * Odds_1 when the difference between the corresponding SATs is 1. If we take the difference, we obtain DeltaOdds = Odds_2 - Odds_1 = 0.042 Odds_1, so it isn't e^b_k = e^0.042 = 1.042, but it also depends on Odds_1.
But if with "Delta" here you mean the ratio between Odds_2 and Odds_1, it is correct, just a bit confusing to call it "Delta". Am I right?
Hey Alessandro,
Thank you for this comment!
I agree that deltas are typically reserved for differences between two quantities, rather than their fraction. In this example, however, it is used to represent the fraction between the odds. It's a matter of choice :)
Kind regards,
365 Hristina