Statistics Slam Dunk

8 Optimal stopping

This chapter covers

• Optimal stopping (aka the 37% rule)
• Regression to the mean
• Creating a frequency table
• Adding a theme to ggplot2 visualizations
• Importing and insetting images into ggplot2 visualizations
• Adding multiple trendlines to a data series
• Creating a derived variable from a substring

There is a popular algorithm called the optimal stopping rule—which is frequently referred to as the 37% rule and sometimes called the look-then-leap rule—that solves the problem of when to take a specific course of action versus continuing to deliberate. Here’s a common use case: Let’s say you’re a hiring manager interviewing candidates for an open role in your organization, and you’re obligated to render a yea or nay decision immediately ...