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It's about the component ratings. I'll use the 20-80 scale for all examples below.
Take power, for example. Everyone has a raw power value. A 50 might translate into someone who is like a 20 HR hitter, for example.
When your scout evaluates the player, they will shift that rating based on multiple factors. The scouting accuracy value obviously is a big factor, but age, "tools vs ability", etc.... all come into play as well. By default, though, their actual performance does NOT factor in here. So even if you're using 25/25/25/25 for those "evaluation" settings, that part only comes in later.
If you use this setting, then their stats WILL come in and adjust things. So if they've hit 40 HR a year for the last few years, then the scout is going to evaluate their power rating higher.
The "25/25/25/25" setting comes into play after the scout has assigned all those other ratings. Basically once the scout has given all the component ratings, they'll come out with an overall rating for the player. Then that rating gets combined with their actual performance over the last few years to get the overall AI evaluation.
The overall impact of the incorporate stats setting is still not that much on the whole. It's not meant to completely override the scout's evaluation, simply to give it a nudge based on their performance. Generally speaking, it should make a player's profile "look" more like what they have done - so someone who's hit 40 HR a year should have a bigger power rating than someone who hasn't, even if your scout sees them for whatever reason as equivalent. It should also help to marginally make the component ratings match a little closer to the overall ratings. For example, without the setting active, you could have 2 players your scout sees with the same component ratings (ie. same contact/power/eye), but their overalls may vary drastically due to their actual performance if you are weighting that heavily in their overalls. But if you have the incorporate stats setting on, then their component ratings will shift and should match a little closer.
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