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Minor League Equivalencies (MLEs) are derived by taking a player's stats and applying a multiplier (or multipliers) based on the difficulty of their league. For the time being, I am using multipliers generated by Sean Smith, who was generous enough to share them with me.
All MLEs are based on park-adjusted stats. For the time being, I am not calculating MLEs for short-season A or rookie league players.
Multipliers for MLEs are generated as follows. To discover the relationship between leagues, find the population of players who played in both leagues in a certain year. If there are enough players, you'll get a general idea of how those players performed at each of the two levels. Weight their contributions for playing time, so that a player who had 100 plate appearances at each level has more impact on the calculations than one who had 500 PAs at one level and 4 at the other. Since players rarely play at more than two levels in a season, the relationship between, say, the Carolina League and the Major Leagues is determined by finding intermediate relationships that we do have data for--say, Carolina League/Southern League; Southern League/International League; International League/Majors. Obviously the math here gets a bit hairy; this is just intended as a sketch to convey the general idea.
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