Rating Percentage Index (RPI)

The Rating Percentage Index (RPI) is a quantity used to rank sports teams based upon a team's wins and losses and its strength of schedule
It is one of the sports rating systems by which NCAA basketball, baseball, softball, hockey, soccer, lacrosse, and volleyball teams are ranked. 
This system has been in use in college basketball since 1981 to aid in the selecting and seeding of teams appearing in the men's playoffs (March Madness), and for the women's tournament since its inception in 1982

In its current formulation, the index comprises a team's winning percentage (25%), its opponents' winning percentage (50%), and the winning percentage of those opponents' opponents (25%). The opponents' winning percentage and the winning percentage of those opponents' opponents both comprise the strength of schedule (SOS). 
Thus, the SOS accounts for 75% of the RPI calculation and is 2/3 its opponents' winning percentage and 1/3 its opponents' opponents' winning percentage.

The RPI lacks theoretical justification from a statistical standpoint. Other ranking systems which include the margin of victory of games played or other statistics in addition to the win/loss results have been shown to be a better predictor of the outcomes of future games. However, because the margin of victory has been manipulated in the past by teams or individuals in the context of gambling, the RPI can be used to mitigate motivation for such manipulation.

Some feel that the heavy emphasis upon strength of schedule gives an unfair advantage to teams from major conferences. Teams from "majors" are allowed to pick many of their non-conference opponents (often blatantly weaker teams). Teams from minor conferences, however, may only get one or two such opponents in their schedules. Also, some mid-major conferences regularly compel their member teams to schedule opponents ranked in the top half of the RPI, which could boost the strength of that conference and/or its tougher-scheduling teams. In basketball, the Missouri Valley Conference has successfully done this: It has become one of the top-rated RPI conferences, despite having very few of its teams ranked in the two national Top 25 polls.

In 2006, the NCAA began to release their RPI calculations weekly starting in January. Independent sources, such as ESPN or CNN/SI, also publish their own RPI calculations, which are updated more frequently.

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