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The numbers are the goal and the modifiers help to reach those numbers. You need to use the "autocalc" button that is on that screen and the game will set the modifiers for you to generate the target numbers.
1.000 is just a starting point for LTM (league total modifiers). Any increase or decrease is a percentage adjustment so 1.150 is a 15% bump while .950 is a 5% decrease. They can run quite a bit over or under 1.000 to produce the "correct" stats. I've seem some as high as 1.750 and as low as .318. The results are dependent on how the players are rated in your league and your LTMs could be totally different than mine and yet still produce the same stats. So if your league is hitting 10% fewer HR over a season the LTM would be increased to 1.100. 10% to many HR and it would be set to .900.
So yes, it is the LTMs that are, more than likely, causing your issue. You could manually test and set these yourself but luckily autocalc will do that for you. It runs three seasons in a matter of seconds in the background and tweaks the LTMs to get your statistical output in line with your "goal numbers".
Keep in mind that autocalc is only available before the season starts. You can run it on opening day, so rosters are at 25 men, as long as you do it before any games are played. Once a game is played the autocalc button disappears until next spring.
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