So, is there any good use of O/E analysis? Yes. It’s called Benchmark Opportunity Analysis.
In last week’s post, I argued that observed over expected analysis (O/E) was commonly misused as a method for doing “level playing field” performance comparisons. I recommend against using it for that purpose. But, is there some other good use for O/E analysis? I can’t think of a good use for the O/E ratio itself


