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>Looks like you've re-invented the signal to noise ratio formula Well, I didn't, Sharpe did. :) However, the important distinction is the notion of a risk-fre
by tansey 15y ago
>Looks like you've re-invented the signal to noise ratio formula
Well, I didn't, Sharpe did. :)
However, the important distinction is the notion of a risk-free rate of return. In this case, it's (loosely) the 1 upvote you automatically get for every comment; in finance, it's usually the return you get on US Treasuries (around 1%, thought right now it's effectively 0%).
>Wouldn't it punish someone who had mostly good comments and posts, and occasionally gets one with a huge amount of karma, versus someone who never got one with big values of karma.
Assuming all else is equal (meaning it's N comments of karma K vs. N+1 comments where the first N are of karma K and the N+1th comment is something huge relative to K)? No. This makes sense if you think about how the standard deviation is derived, also note that I am capping the minimum standard deviation at 1 so consistently hitting the same karma does not give you an infinite score.
However, if both individuals have the same mean karma but one got it from consistently scoring around that mean, and another got it from having one huge upvoted comment and several smaller ones, then yes. But isn't that what we want?