Wednesday, 20 April 2016

What are the Odds? Canada and the Stanley Cup Playoffs


What are the Odds?  Canada and the Stanley Cup Playoffs



Another year has come and gone, with no prospect of a Canadian team winning the Stanley Cup.  This will be the 22rd year in a row, without a win.  This year comes with a special twist, as none of the Canadian teams even made the playoffs, so we know for certain that there can’t be a Stanley Cup winner based in Canada this year.

So, what are the odds of all 7 Canadian teams missing the playoffs in the same year.  One might intuitively think that it is not all that unlikely - after all, 16 teams have to miss the playoffs, and that means there were actually 7 American teams that missed as well as the 7 Canadian teams.  That’s not really such a big deal, you might think.

Actually the odds against this occurring are pretty low.  You can calculate it at about 2 chances in 1000, or 0.0017 or 0.17%, depending on how you like to describe it.  There are several ways to calculate this:

·        1 - The first way, is the classic “coloured balls in an urn” technique.  In this case, we frame the problem as “you have an urn with 30 balls (the number of teams in the NHL).  23 of those are blue (U.S.) and 7 are red (Canadian).  What is the probability of drawing 16 balls, with all of them being blue?”.  And as we might remember from mathematics that probability is:

o   (23/30)X(22/29) X(21/28) X(20/27) X(19/26) X(18/25) X(17/24) X(16/23) X(15/22) X(14/21) X(13/20) X(12/19) X(11/19) X(10/17) X(9/16) X(8/15) = 0.0017.

o   The basic idea here, is that on the first draw there are 23 blue balls (U.S. teams), out of 30 in all.  So, that gives 23/30.  On the second draw, there are now 22 blue balls, out of 29 in all, left in the urn.  We keep doing that for all 16 draws (the number of playoff spots), decrementing both numerator and denominator each time.  Then, we multiply out all of those probabilities to get the overall probability.

·        2 - The second technique, is to calculate the number of ways there are to form the numerator (how may ways can you create a list of 16 teams from 23 U.S. teams), then calculate how many ways there are to form the denominator (how many ways can you create a list of 16 teams from 30 teams).  Then divide one into the other, and you have your probability, which is again .017.  You can work this out from the formula for combinations, which is N!/(N-K)!K!, where N is the total number of items in the list and K is the number you want to choose.  Or, you can use the excel COMBIN function.

·        3 - Alternatively, you can write a little Monte Carlo program or set up a Monte Carlo spreadsheet in excel.  In this, you would set up a list of 16 random numbers, then check them to see if the first in the list was less than 23/30 (that would indicate a U.S. team in the first playoff spot), the second was less than 22/29 (that would be a U.S. team in the second playoff spot), and so forth, until all 16 spots were filled.  For a given list of 16 spots, check whether zero Canadian teams were included.  Then, repeat that a few hundred or a few thousand times, and calculate how many times you had zero Canadian teams in a given list of 16 spots.  You should find a small number of occasions where that happens, about 1 in every 500 sets (0.0017) of 16 playoff lists (or simulated seasons).  That’s what my excel spreadsheet gave.

The other question is “what are the odds of no Canadian team winning the cup for 22 straight years?” .  That’s a pretty low probability event as well, at about .0053.  One way to calculate that is via the binomial theorem.  You can look that up in a table (lots of them can be found on the internet, or you can find one in a stats textbook), or use the excel function BINOM.DIST.  The calculation can be described as “how many times would you get 0 successes in 22 trials, assuming the probability of success in any given trial was about 7/32” (actually, I used .212 instead, to reflect the changing percentage of Canadian teams in the league over the 22 years).

You can also set up a Monte Carlo for this, as a check.  The procedure is similar to before:

·        Make a list of 22 random numbers.

·        Test them to see if any of them are less than .212.

·        If so, then a Canadian team won in that run of 22 seasons.

·        If not, you have uncovered a simulated streak similar to the one that we are living through.

When I did this, I found 3 occasions in my 22 season streaks, out of 500 trials, where no Canadian team won the cup.  That’s about .006, very similar to what the binomial theorem predicted.

You can do other things, like simulate this procedure with playing cards instead of computer generated random numbers.    Remove the King and Queen of clubs from the deck, then deal cards from a shuffled deck until you hit a club.  Record how many cards you had to turn over to do this.  I did this, and found only one club-free run in 250 trials (equivalent to no Canadian team winning a Stanley Cup).  That represents a 0.004 probability of this event occurring, very similar to what the Binomial theorem predicted. 



 

So, we have two awfully unlikely events occurring.  It begins to stretch credulity to consider this merely bad luck.  Some other theories have been propounded:

·        It’s related to the Canadian dollar.  But that doesn’t work, as the Canadian dollar has varied considerably during this time period, sometimes being lower and sometimes higher than the U.S. dollar, as the accompanying graph shows (the graph shows how many Canadian dollars it would take to buy a U.S. dollar, from about 1970 to the present day).  Indeed, during the 1980’s Edmonton Oilers dynasty, the Canadian dollar was quite low, and during the 2000-2010 part of the recent Stanley Cup drought it was quite high.

·        Another theory states that hockey players can’t stand the pressure of playing in the Canadian cities, where the sport is taken very seriously by the fans. Therefore, the players choke, basically.  That theory falls down in two ways:

o    First, professional athletes are not given to choking, especially so many athletes over such a long period. 

o   Second, they should have been choking in hockey-mad U.S. cities like Chicago, Boston, Detroit and New York, too.  They didn’t , as all of those teams have won cups during the Canadian drought.

So, the only theories left, are:

·        conspiracy (the league let the U.S. teams win, to help the U.S. marketplaces),

·         economics (Canadian teams can make as much money losing as they can winning, so they don’t manage business affairs with winning as a significant priority), 

·        or plain bad luck. 

 Truly a conundrum.

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If you have some spare time, possibly due to lack of interest in the NHL playoffs, you might want to consider a nice road trip, exploring the non-hockey contrasts between Canada and the U.S..  If so, then “On the Road with Bronco Billy” is definitely your book. 

Sit back and go on a ten day trucking trip in a big rig, through western North America, from Alberta to Texas, and back again.  Explore the countryside, learn some trucking lingo, and observe the shifting cultural norms across this great continent.  There's even some hockey playoff talk (Oilers-Denver and Oilers-Dallas), for those nostalgic for Canadian playoff representation.




It’s on Amazon (ebook), for a mere 99 cents (U.S.).















Sunday, 10 April 2016

Postmedia - Debt Restructuring or Death Rattle?


Postmedia - Debt Restructuring or Death Rattle?
The Globe and Mail Report on Business reported this week (Thursday, April 7, 2016 - "End of Postmedia’s debt ‘noose’ in sight"), that Postmedia is likely to restructure its debt very soon. The market value of its bonds has fallen from 71 cents on the dollar to 14 cents on the dollar since January. That’s a signal that the market is assuming that a looming debt restructuring will force several bondholders to take huge write-downs, or worse, get their bonds converted to a worthless stock (i.e. Postmedia shares).

As Paul Tepsich of High Rock Capital Management is quoted saying in the article, “this bond will be restructured and become new equity, so the existing, current equity holders have been annihilated.” The hope is that the restructuring will give the company a longer survival time, and possibly save the business.
Which seems unlikely to me, though I’m no expert. It looks like the debt holders who have first priority are preparing to extract what value they can from the company, and the devil take the hindmost. When all is said and done, it looks like debt holders further down the list will be get next to nothing, as will stockholders. According to Peter Adu, at Moody’s “The equity is in my mind not worth anything because even the assets the company has, what we value it, is not enough to cover the debt.”  By the way, the stock is trading at 8 cents, right now.

Some observers think the company can become viable again, if they jettison the debt, though the overall business model is not improving with time; rather, it’s getting worse. Print advertising revenue continues to decline (down 18.3% year over year, in the first quarter), as does circulation (down 8%) and digital revenue (down 4.2%). Meanwhile, interest on its debt actually increased 6.6%. It looks like an impossible situation.
Those figures were from a follow-up story in G&M ROB, the next day (“Postmedia to review options as Golden Tree seeks an exit”). That article also stated that the Golden Tree rep (one of the biggest debtors) stepped away from the Postmedia Board. That’s an ominous sign.
As an example of how this impinges on journalistic quality, I noted that my local Postmedia paper had a story about the Saskatchewan election in the Tuesday morning edition, which had clearly been written before any votes had actually been counted. They declared the winner, without so much as a mention of the actual election results, obviously forecasting the result from polls, without bothering to wait for results. In this case it was correct, but it is pretty shoddy journalism to announce reality before it actually happens. But, it’s the sort of thing you do, when you have to cut back newsroom staff to the bone.
So, how much time is left? Who knows, but I suspect not very much. Will other papers like the Globe and Mail go through the same process? Possibly, but Postmedia’s management was uniquely bad, and has been so for a long time, so it is not inevitable that the Globe and Mail will follow suit. I just hope that something decent, in the way of a local paper, arises from the ashes of Postmedia.

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Speaking of taking a hike, Mr. Godfrey might want to consider the Juan de Fuca Marine Trail.  But, first he should study the trail with the help of "A Walk on the Juan de Fuca Marine Trail", available on Amazon for only 99 cents (that's 12.375 shares, when converted to Postmedia currency).


Tuesday, 5 April 2016

Two Views of the Sun, via an iPad and Eclipse Filter



Two Views of the Sun, via an iPad with an Eclipse Filter

Here are a couple of pictures of the Sun, take with an iPad, through an “eclipse filter”.


The first was taken with the standard iPad camera app, with the lens covered by an eclipse filter, that I got during the last eclipse, from a university observatory.  The filter blocks almost all of the sun’s light.  I am not sure of the fraction of light allowed through, but suffice to say that nothing dimmer than the sun seems to make it through the filter.


The blend of colours is nice, especially the yellow around the limb.  This could be a manifestation of limb darkening, with the brighter interior pure white (CCDs saturated) and the darker limb showing the sun’s yellow frequency peak (CCDs not saturated).  Or maybe it is some other iPad optical response.






The next picture was taken with the iPad camera “stopped down” via an inexpensive app, available from the Apple app store.   The image was fairly small, so this enlargement is a bit pixelated.  So, the apparent detail around the edge of the sun is an artifact of image processing, rather than of the sun itself.




Someday, it would be nice to try this iPad photography during an actual eclipse.




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Book one of the Witches' Stones series (Rescue from the Planet of the Amartos)

And here’s a (fictional) planet with a sun much hotter than our own, though still inhabitable:

“To help pass the tense minutes, Coryn studied the world outside the lone small window.  Greenery was planted outside the window, needed as a screen to protect the dwelling from the blazing white Kordean sun.   The leaves were thick and rubbery – unlike human beings, the plants that grew on Kordea could not escape the brilliant sun, so they had evolved a tough outer layer.  He reflected that this world was a fantastic mixture of the mystical, as represented by the seven moons, and the inescapably physical, as represented by the blistering Kordean sun.”

Plus, there's a nice neutron star on the cover, as well as a rather fetching heroine.  So, you should check it out :).