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Mitch Wagner

The 'Moneyball' Election

Written by Mitch Wagner
10/26/2012 67 comments
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This year's Presidential election will be a referendum on the power of analytics.

The political pundits and conventional polling are all leaning one way in gauging the opinion of the electorate. And then there's this one guy, armed with advanced analytics tools, who's reading the landscape completely differently.

You've seen headlines like these in the past few days:

That represents the common wisdom about the election, from bloggers and pundits who've been covering politics for decades, armed with conventional polling tools. Most say the race is drumhead-tight. Some say Mitt Romney is winning.

And then there's Nate Silver, author of the blog FiveThirtyEight. He sees things very differently, giving President Barack Obama 71 percent odds of winning the election.

How does Silver reach such a widely different conclusion? He looks at all the polls, and runs them through an algorithm he developed in the 2008 election and fine-tuned in the spring. He has very little gut feeling and experience about politics -- indeed, until just a few years ago, he specialized in baseball stats.

It would be easy to dismiss Silver as a lone voice, if not for his track record. Using his analytics tools, he predicted the outcome of 49 of the 50 states in the 2008 election and projected the overall popular win to within a single percentage point. He also predicted primary winners, and the winners of all 35 Senate races that year. Impressive.

If you saw the movie Moneyball, or read the book by Michael Lewis, this sounds familiar. And the baseball tie-in is no coincidence. Before he got into political analysis, Silver analyzed baseball stats; he developed a system called PECOTA (Player Empirical Comparison and Optimization Test Algorithm), which predicts player performance, career development, and seasonal winners and losers. Just like in Moneyball (but a couple of years later).

Journalist James Fallows connects the dots. He says this is "a perfect test case of the Michael Lewis Moneyball hypothesis."

Apart from Silver's own background as a sports-stats analyst, we have an exceptionally clear instance of people judging from their experience, their "bones," their personal instinct, etc that things are going one way (like veteran scouts saying that a prospect "looks like a Big Leaguer"), while data (on-base efficiencies in one case, swing-state polls in another) point in the opposite direction.

I don't know who's right, but I note this as a moment of unusual clarity about two approaches to politics. Among the many things we'll learn two weeks from now (and in the assessment afterwards) is which of these approaches to political analysis has revealed a profound flaw.

The outcome of this election will have vast global significance, of course, but it'll have particular importance among business leaders who advocate analytics, many of whom face resistance from CEOs and line managers who believe their instincts and gut feelings, honed by years of experience, beat the results of analytics. If Silver's analyses prove as accurate this year as they were in 2008 -- if he can predict not only the winner of the election, but the state-by-state breakdowns and popular margins -- then he'll arm analytics advocates with a powerful example with which to convince the skeptics.

But Silver might be wrong. He's the first to admit that. That 71–29 lead for Obama doesn't mean that the incumbent is 40+ points ahead in the polls. Rather, it means that, of all the thousands of simulations Silver's algorithms have run, Obama won 71 percent of the time. There's still a better-than-one-in-four chance that Romney will win. I wouldn't bet my retirement savings on those kinds of odds.

For more from Silver, see a video interview with Silver at the IBM Information on Demand conference in Las Vegas. (IBM sponsors Internet Evolution.)

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— Mitch Wagner Circle me on Google+Follow me on TwitterVisit my LinkedIn pageSubscribe to my Facebook feed, Editor in Chief, Internet Evolution

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Joe Stanganelli
Thinkernetter
Friday October 26, 2012 10:59:56 AM
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I've been reading Silver's 538 blog since 2008 -- and he even got started before then, I beliee, attracting a lot of attention for the accuracy of his "predictions" (though Silver would perhaps be the first to say that he is loathe to call them that) in the 2006 Senate elections.

More fascinating is reading his blog posts, in which he describes his methods, his thinking on new developments in the campaigns, and the significance of the polls -- what's perhaps overlooked, and what's perhaps given too much weight and attention.

It will be interesting to see how things turn out in November!

Mitch Wagner
Thinkernetter
Friday October 26, 2012 11:25:22 AM
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Joe - I love his blog posts for the same reason. He basically elucidates every reason he might be wrong. That's real scientific thinking, something we have too little of in politics and business. 

Kim Davis
Thinkernetter
Friday October 26, 2012 12:12:50 PM
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I follow Silver too, but I don't think he's quite a lone voice.  Here's an interesting analysis today of the way the media has scrambled to detect momentum in Romney's campaign -- basically because a horse race in which the lead never changes is dull.

Silver focuses, quite rightly, on battleground states and the electoral college.  While some national polls occasionally show Romney in the lead, Obama has held a small but unwavering lead in the battleground states, pretty much since the campaign started.  Silver's not out on a limb with his data, but other major polls continue to emphasize (pointlessly) national standings.

 

Kim Davis
Thinkernetter
Friday October 26, 2012 12:16:17 PM
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Something which people might find scary is that analytics might rob races like this of any excitement whatsoever.  Unless there's a systematic, undetected bias in the data, there's really not much doubt now about the outcome of the election (people confuse it being a close race with it being an unpredictable race).

Yes, there might be such bias, and Silver's predictions might be confounded -- but it's hard to see right now what it could be, across all the polling data he analyzes.

Mitch Wagner
Thinkernetter
Friday October 26, 2012 12:47:19 PM
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Kim - I've seen that theory too, from other Silver-followers, that the media likes the close-race story and the Romney's-come-from-behind story because it's a better story than, "You know that guy we told you in July was going to win the election? Yeah, still winning."

I've also seen speculation that the Romney campaign team is pushing the story hard to avoid his supporters getting discouraged and giving up. It's a better story for them too.

The close-race story also benefits Obama in that it keeps his team from getting complacent and ceding advantage to the opposition. 

 

Mitch Wagner
Thinkernetter
Friday October 26, 2012 12:50:00 PM
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Scary? Considering the amount of money and effort wasted on Presidential elections, we can use a lot less excitement. 

I'm not saying the Presidential election isn't important. The Presidential election is important. (Although given the matrix of powers that exist even in an autocratic regime like China, let alone a democracy, the guy at the top has less power than we think). But a voter could make a perfectly informed decision with about two hours of research. We don't need the year+ death march this has now become. 

Although the population seems to enjoy it. It's one big sporting event. Very much like baseball as a matter of fact. 

Kim Davis
Thinkernetter
Friday October 26, 2012 12:50:35 PM
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Yes, it certainly helps get the vote out on both sides.  But if reports about the vast superiority of Obama's ground organization are to be believed, I think this one is done and dusted.  Which doesn't mean, of course, that it won't be close.  It's always been close.

Kim Davis
Thinkernetter
Friday October 26, 2012 1:11:17 PM
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I agree, Mitch.  It's become a media event, and each first term of a President's office seems to be devoted in large part to winning the second term.

UK election campaigns, if I remember rightly, last about a month (officially, anyway).

Mary Jander
Thinkernetter
Friday October 26, 2012 1:22:49 PM
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Some members of the population don't enjoy this ongoing kickboxing match that's called the presidential election. Some are counting the days until it's over. Just sayin.

Kim Davis
Thinkernetter
Friday October 26, 2012 2:07:13 PM
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Silver posted just now:  "Mr. Obama has led in the polling averages all year in states that would allow him to win the Electoral College, and that remains the case now."

Not much to see here, apart from the kicking and screaming.

 

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