# Ratio With Shrinkage

Performs empirical bayesian estimation with shrinkage towards a beta prior. Given a dataset with a numerator and a denominator, will calculate the raw ratio as numerator / denom, as well as provide an adjusted ratio that shrinks the ratio towards the observed beta prior.

This is a simplified version that establishes the priors directly from the data given a min\_cutoff count of observations.

NOTE: your data should already be aggregated before performing this operation.

## Parameters

| Name        | Type   | Description                                                                                                                                                                                                                                 | Is Optional |
| ----------- | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- |
| numerator   | column | A column that is pre-aggregated to contain the count of positive cases                                                                                                                                                                      |             |
| denom       | column | A column that is pre-aggregated to contain the count of ALL cases                                                                                                                                                                           |             |
| min\_cutoff | int    | Enter a minimum value to limit the denominator when creating the prior estimates. Example: if estimating a batter's hitting percentage, entering 500 would limit the estimation of the priors to be only for batters with over 500 at-bats. |             |

## Example

```python
ds = rasgo.get.dataset(fqtn="BATTING_AVERAGES")

ds2 = ds.ratio_with_shrinkage(numerator = 'HITS', 
              denom = 'AT_BATS', 
              min_cutoff = 500)

```

## Source Code

{% embed url="<https://github.com/rasgointelligence/RasgoTransforms/blob/main/rasgotransforms/rasgotransforms/transforms/ratio_with_shrinkage/snowflake/ratio_with_shrinkage.sql>" %}


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