The document describes Nate Silver's statistical modeling approach for forecasting the 2012 US Presidential election, which involved forecasting the popular vote in each state separately using polls, demographics, and economic indicators, then aggregating to determine the overall winner; it also discusses how Silver calibrated polls, incorporated uncertainty, and evaluated forecast accuracy.
1. Modeling the 2012
U.S. Presidential Election
Exploring the Forecasting Methods
Of Nate Silver and the Five-Thirty-Eight Blog
Prepared for the 3/1/13 RTP Analysts Luncheon Meetup
By Bruce Conner
Consolidated Behaviors and Attitudes
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2. Purposes of This Discussion
• Walk through the elements of Nate Silver’s methods in
predicting the 2012 Presidential election
• “Kick around” some outstanding questions about those
methods
• Explore whether participating analysts are using similar
methods in their day-to-day work – and how they are using
them?
• Sources listed in a “rough bibliography” at the back of this
presentation
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3. Background: Nate Silver
• Developed PECOTA, a highly-successful “sabremetric”
model used for forecasting the performance and career
development of Major League players
• In 2008:
– Correctly predicted 49 out of 50 states (missed on Indiana)
– Correctly predicted all U.S. Senate elections
– Made better predictions for some of the primaries than major
polls, using a demographic prediction model
• In 2010, less good predictions in U.S. House races
• In 2012:
– Correctly predicted all 50 states and the District of Columbia
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4. Nate’s Approach to
Forecasting the Elections (1)
• Forecast Each State
– As we learned in 2000, the election is decided in the Electoral
College:
– Nate decomposes the election into the 50 states and the District
of Columbia, and forecasts popular vote in each separately
– National projections of popular vote are simply the aggregate of
the state popular votes
– This approach is a type of hierarchical modeling
• Who is using hierarchical modeling techniques – and how are you
using them?
• Leverage Multiple Data/Predictor Sources
– Polls within each state
– Voter registration and demographics
– Economic indicators
– “Borrowed information” from other (similar) states
– National polling (used only for inferring trends in the individual
states)
– Etc.
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5. Nate’s Approach to
Forecasting the Elections (2)
• Calibration of Each Poll (Offsetting “House Effects”)
– Measure -- and offset -- systematic bias of each pollster
– This is done by a regression for each pollster of all their
national polls against a weighted average of the national polls,
as well as a regression of their polls in the various states
against a weighted average of the polls in each state. Nate also
lowered weight of polls that seem to be consistent outliers
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6. Nate’s Approach to
Forecasting the Elections (3)
• An Economic Index is Used as an “Additional Poll.” It is
based on:
– The four factors used to date recessions
• Job growth (nonfarm payrolls)
• Personal income
• Industrial production
• Consumption
– Inflation (CPI)
– Change in S&P 500 Index
– Consensus forecast of gross domestic product growth over the next two
economic quarters, as taken from the median of The Wall Street
Journal’s monthly forecasting panel
• The economic index is used as a predictor of trend in future polls
– as a “gravitational factor” that is likely to influence polls in the
coming periods (with a lag effect). It is gradually removed
(deweighted) from the model as the election approaches.
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7. Nate’s Approach to
Forecasting the Elections (4)
• Adjustment to state-level polls based on trend
– National polls and state polls show trends over time
– Particularly when some states do not have recent polls (or recent polls by
a particular pollster), it is often reasonable to infer that if those polls
would have been repeated today, they would be affected by trends
– The method to determine trends is a regression with (1) dummy variables
for each week and (2) dummy variables for each pollster in each state.
– A LOESS regression is used to smooth the trend.
– A “trend” correction is then applied to the older polls to reflect the effects
of the trend since the poll was taken
– An example of “Bayesian thinking”
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8. Nate’s Approach to
Forecasting the Elections (5)
• A multiple regression of demographics,
registration, and similar factors is treated as an
additional poll
– Voter registration, race, gender, age, income, etc. as
predictors of how a state will vote
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9. Nate’s Approach to
Forecasting the Elections (6)
• Weighted Averaging of Polls
– The predictions from the demographic regression and
from the economic index are treated as additional polls
– Weight of the economic index is reduced as election
approaches, until it disappears in the final forecast
– Weighting of Polls Against Each Other Is Based On
• Sample size
• Recency (weighting is done using a “half life” formula –
because polls closer to the election are more accurate)
• Ratings of pollsters (see following slides)
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10. Nate’s Approach to
Forecasting the Elections (7)
• Pollster Ratings* Reflect Accuracy of Each Pollster
in Predicting Actual Election Results
– Raw ratings scores are done based on a multiple
regression
– Each data point is a published poll taken by a pollster in
one of:
• A presidential, gubinatorial, senatorial, congressional, or
“generic house” race
• A full range of elections/primaries/caucuses
• Within 21 days of an election, primary, or caucus
• For elections starting with the 1998 election cycle
– The rating of each pollster is based on all of the polls
attributed to that pollster – across the years and in the
different types of elections
– The dependent variable is the size of the error in
predicting the gap between the top two candidates
*For more detail on pollster ratings methods, see
additiona l slides near end of this presentation
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11. Nate’s Approach to
Forecasting the Elections (8)
• Pollster Ratings (Continued)
– Some properties of the raw rating regression:
• Pollsters are “rewarded” for accurately predicting results
(minimizing error) further away from the election
• Pollsters are also “rewarded” for “degree of difficulty” of
predictions
– It’s harder to accurately predict state and local elections than
national popular vote in a presidential election, and to predict
primaries than “generals” – as demonstrated in the following
average percent error bar chart
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12. Nate’s Approach to
Forecasting the Elections (9)
• Nearest Neighbor
– Particularly useful for states that have low levels of
polling
• This tends to be true for states with lower population and
for states “not in play”
– Nate Silver is a big fan of Bayesian approaches and Bayesian
thinking – could he have used such approaches, instead of
Nearest Neighbor, to “borrow” information from similar states?
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13. Nate’s Approach to
Forecasting the Elections (10)
• Modeling Uncertainty: based on a number of factors,
each state forecast includes both a point forecast and an
“uncertainty distribution” (a normal curve????).
Uncertainty is influenced by:
– Number of (reliable) polls
– Sample sizes
– Number of undecided voters
– Consistency of the polls being averaged (size of standard
deviation)
– Time until election
• Has Nate modeled levels of uncertainty in various kinds of
elections at various removes from the election? How is this
analysis done?
– NOTE: Nate provides both a “Now Forecast” (“If the election
were held today …”) and a true forecast. These completely
converge as election nears
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14. Nate’s Approach to
Forecasting the Elections (11)
• Monte Carlo Simulation: on a regular basis (eventually every
night), 10,000 simulations of the election are run
– Results for each state in each simulation is arrived at separately,
providing both the “expected” (mean) result and the uncertainty (a
normal curve???)
– Some approach is used to take account that states are not
independent of each other (e.g., Minnesota and Wisconsin tend to
move in tandem) – nearest neighbor? Trending?
– For each simulation, a winner is picked – and electoral votes
assigned accordingly
– For each simulation, electoral votes are totaled and a winner picked
– The thousands of simulations provide a distribution of probable
electoral college outcomes and a distribution of popular vote
outcomes (by state and national)
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15. Nate’s Approach to
Forecasting the Elections (12)
• Major event adjustments
– Based on previous elections, certain predictable events are expected
to have a somewhat predictable effect over the course of the
campaign cycle
• In 2012, both candidates were “expected” to get a “convention bounce” of a
certain magnitude
• As challenger, Romney was also “expected “ to get a bounce of a certain
magnitude from the 1st debate.
• Bounces from previous elections tend to be “noisy” but do show average effects
– The effect of the bounces s expected (predicted) to decay in
predictable way
– Nate Silver:
• Factored in expected bounces and decays in making forecasts of final results
• Recognized increased uncertainty during periods when bounces were most
recent
• Temporarily penalized or rewarded candidates who under- or over-performed
the expected bounces
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17. Additional Issues (Related to Polling)
Not Addressed in This Presentation
• Differing Sampling Approaches of Polls
• Differing Likely Voter Models of Polls
• Differing Survey Media of Polls
– Web only?
– Include cell phones in sample?
• Differing Weighting Schemes of Polls
– To correct for demographic bias
– To offset biases of particular survey media
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18. How Did Nate Do?
Obama Won!
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19. How Did Nate Do?
Obama Got 332 Electoral Votes: Exactly the Mode (Most
Likely Outcome) of His Distribution Projection
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20. How Did Nate Do?
Popular Vote: An Error of 1.3%
• Silver predicted a 2.5% gap – final result was a 3.8% gap
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21. How Did Nate Do?
• He correctly called all 51 states – and called Florida as the only
“tossup” – with Obama having a 50.3% chance of victory
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22. Forecast Errors of the States
• 2 of 51 states were
outside of the
expected margin of
error (we would have
expected 1 state)
• On average, Nate
forecast the states
0.2% too Republican
(skewed slightly
Republican)
• Skewness = -0.6
• Kurtosis = 0.75
“Too Democratic” “Too Republican”
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23. Errors in Key (Swing) States and
States With Largest Errors
Swing States
State Pct Too Republican
Colorado 2.2
Florida 0.6
Iowa 2.4
Michigan 1.4
Nevada 2.1 States With Greatest Errors
New Hampshire 2.2
State Pct Too Republican
North Carolina (0.5)
West Virginia (10.6)
Ohio 1.7
Mississippi 9.1
Pennsylviania (0.8)
Hawaii 9.0
Virginia 1.0
Alaska 7.6
Montana (5.1)
North Dakota (5.1)
Utah (5.1)
New Jersey 5.0
Arizona (4.6)
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24. Nate’s Approach to
Forecasting the Elections
• Drilling Down Into Pollster Ratings (1)
– Raw Scores Are Produced By a Multiple Regression
– Variables in the regression include:
• Dummy variables representing each pollster (the “B” of these
dummy variables is the raw score for the pollster)
• The square root of the number of days between the median polling
date and the election (separate variables for primaries and general
elections – because primaries are harder to predict)
• Sample size (this variable is only marginally significant)
• Dummy variables to represent the type of election and the cycle
(e.g., a single variable represents a 2000 senatorial election)
• A separate dummy variable to indicate primary vs. caucus
• A set of dummy variables indicating particular races – for those
races that have “robust” amounts of polling
– Non-robust races lack these dummy variables, and are therefore
compared against each other
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25. Nate’s Approach to
Forecasting the Elections
• Drilling Down Into Pollster Ratings (2)
– Regression data points are weighted based on:
• How many surveys the pollster did for each particular election
• How recent the election was (e.g., in 2010, 2008 elections were
weighted twice as much as 1998 elections)
– Raw rating scores are “regressed against the mean” to
produce a final pollster rating
• For the 2012 cycle, two raw regressions were done – one for the
election cycles through 2008, and another for the 2010 election cycle.
• The purpose was to understand how well the earlier regression
predicted the 2010 regression for each pollster – and to “discount”
each rating to account for how much of the rating was the result of
“signal” and how much “noise” (don’t fully understand this)
• The resulting formula provided a “reversion parameter” that
calculated how much the raw score should be discounted, based on
the following formula:
reversionparameter = 1 - (0.06 * sqrt(number of surveys))
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26. Nate’s Approach to
Forecasting the Elections
• Drilling Down Into Pollster Rations (3):
– Example of regression against the mean of raw rating
scores:
• A particular pollster has a raw score of -0.50 (i.e., on a
weighted average, their polls produce a 0.5% reduction in
error compared to the average for all pollsters)
• The same pollster has 25 polls in the sample
• reversionparameter = 1 - (0.06 * sqrt(number of surveys))
= 1 – (0.06 * sqrt(25))
= 0.7
• Final rating score = 0.50 * (1-0.7) = 0.15
– In the regression against the A dummy variable
representing whether the pollster has made one of two
commitments to methodological transparency (a predictor
of accuracy)
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