MMasters in Business
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Nate Silver21 August 2015

Statistics With Nate Silver: Masters in Business (Audio)

4Frameworks
11Insights

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Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Myth Buster· 2

Myth Buster18:52

Unmeasured Does Not Mean Unimportant

Baseball analysts once struggled to measure positional defense and sometimes treated that difficulty as a reason to ignore it. Better location data revealed large differences in defensive range and showed that the same contact could become an out or a double depending on fielding.

  • Measurement difficulty can make analysts neglect important effects
  • Positional defense changes the value attributed to pitching
  • Location data made defensive range directly measurable
  • New measurements can overturn an established analytical blind spot

“a lot of what people think of as pitching is really positional defense”

Nate Silver · 18:52

“there's always the peril that people think, oh, if you can't measure something there, for it's not Wharton.”

Nate Silver · 19:53
#baseball#measurement#defense#analytics
Myth Buster36:04

The One-Percent Play That Became an Obvious Mistake

Discussing Seattle's intercepted Super Bowl pass, Silver says the play call was defensible because interceptions in that situation were rare. He highlights how an adverse result can produce post-hoc certainty even though nobody would have complained had the pass been completed.

  • Outcome quality and decision quality are different
  • A low-probability failure can still occur after a reasonable choice
  • Anecdotal reconstruction expands after the result is known
  • The same call would be judged differently after a completion

“something like one percent of passes get intercepted in this situation”

Nate Silver · 36:30

“no one would ever have complained about that play call for a second, if he caught the past”

Nate Silver · 36:42
#hindsight bias#football#decision quality

Hot Take· 2

Hot Take13:39

Campaign Journalism's Original Sin Is Narrative

Silver argues that campaigns move slowly and contain relatively few events that truly change the race. Daily journalism still needs a story, creating an incentive to force incremental developments into a compelling narrative and repeat familiar themes from earlier campaigns.

  • Campaigns unfold more slowly than daily coverage implies
  • Only a few events genuinely upset the race
  • Narrative incentives can outweigh historical context
  • Old campaign storylines recur because prior coverage is forgotten

“Campaign journalism's original sin, right, UM is it's like a baseball season where things play out really slowly.”

Nate Silver · 14:05

“It's hard to write every day of the story. Like you know, today people campaign and nothing of importance happened.”

Nate Silver · 14:20
#media#campaigns#narrative bias
Hot Take1:49:50

The Least Accurate Forecaster Can Look Like a Genius

Silver says a field of forecasters will often contain someone making an extreme call who lands in first place by chance. Television compounds the problem because precise, confident predictions are more believable than honest uncertainty even when they are less likely to be accurate.

  • Extreme forecasts create lottery-like reputational upside
  • The winner of a forecast contest may have a worse median process
  • Precision attracts belief even without accuracy
  • Media incentives favour certainty over calibration

“someone who makes an outlandish forecast will be in first place, even if their meetian outcome is worse”

Nate Silver · 1:50:18

“Not only is that person less likely to be accurate, but they're more likely to be believed”

Nate Silver · 1:50:47
#forecasting#media incentives#confidence

Explainer· 3

Explainer05:46

Why Sports Data Spoils Analysts

Silver says sports offers unusually abundant and reliable data with little measurement uncertainty. That lets analysts spend more time testing hypotheses, while fields such as politics often require extensive cleaning and basic questions about whether the data says anything at all.

  • Sports provides many seasons and many observations
  • Measurement error is relatively limited
  • Other fields consume far more effort on data cleaning
  • Reliable measurement changes what analysis can accomplish

“We're spoiled in sports in the sense that, um, so much data is so much data. The data is so reliable”

Nate Silver · 05:46

“in most fields, you know, to some extent, including politics, you're spending nine saying your time cleaning up the data”

Nate Silver · 06:00
#sports analytics#data quality#measurement
Explainer33:14

Measure Managers by Player Outperformance

Silver thinks a baseball manager's visible tactical choices may change only a few wins over a full season. The understudied question is whether players systematically beat manager-blind preseason projections, as he says San Antonio Spurs players did under Gregg Popovich against naive projections.

  • Baseball tactical choices may have limited season-long impact
  • Player development and motivation may matter more
  • Manager-blind projections create a useful baseline
  • Persistent residual outperformance can reveal coaching value

“the strategic choices of manager makes are not very consequential”

Nate Silver · 33:14

“What I think is understudied is, uh, how much influence a manager has on getting the best out of his players?”

Nate Silver · 33:31
#management#coaching#performance#sports
Explainer42:58

Why Different Athletic Skills Peak at Different Ages

Silver explains an average performance peak as the intersection of declining physical attributes and improving mental attributes. Positions dominated by physical wear can peak very early, while roles with a larger cognitive component, such as quarterback, can remain strong into a player's thirties.

  • Overall performance combines physical and mental components
  • Physical attributes may peak before aggregate performance
  • Experience can temporarily offset physical decline
  • The balance differs sharply by role

“the average player peaks at twenty seven”

Nate Silver · 43:01

“Your mental attitudes keep growing. Um, that makes up for the physics you have the best overall combination”

Nate Silver · 43:09
#aging#performance#sports science

Story· 1

Story1:36:30

Two Thousand Journalists Manufacturing Groupthink

Silver recalls attending a presidential debate expecting to observe how it played inside the room. Instead, journalists were placed together in a large gymnasium and watched one another's Twitter feeds in real time, a setup he calls a literal mechanism for manufacturing groupthink.

  • Reporters were separated from the debate room
  • Thousands of journalists shared one information environment
  • Real-time social feeds synchronized their interpretations
  • Conventional wisdom can emerge from the reporting setup itself

“you're heard it in this giant gymnasium with two thousand other journalists all checking one other Twitter feeds in real time.”

Nate Silver · 1:36:45

“It's like the literal definition of group think being being manufactured.”

Nate Silver · 1:36:55
#groupthink#journalism#social media

Takeaway· 3

Takeaway1:30:28

Expert Intuition Is Thinking You Already Paid For

Silver is skeptical of a simple ten-thousand-hour rule but says experience does create useful judgment. Years of model building help him spot unnecessary complexity, overfitting, and approximations that miss the real problem before a less experienced analyst sees them.

  • Experience can reveal unnecessary model complexity
  • Experts recognize overfitting patterns earlier
  • Useful intuition reflects prior investment in thinking
  • Experience does not make every instinct reliable

“you're unnecessarily complicating the problem”

Nate Silver · 1:31:09
#expertise#intuition#overfitting
Takeaway1:52:09

A Three-Point Polling Miss Is Normal

Silver warns that polling is not foolproof and cites difficulties in several non-US elections. He says Obama's 2012 result beat the polls by about three points, an average-sized miss that happened to fall in a direction that preserved the forecasted winner.

  • Polling reliability varies across countries and elections
  • Changes such as increased cell-phone use complicate collection
  • A three-point miss is approximately average
  • Forecast success can partly depend on the direction of ordinary error

“polling is not fool proof either, and that's why it's like, you know, that's why I say we got lucky in part in two thousand…”

Nate Silver · 1:52:35

“a three point miss is about average.”

Nate Silver · 1:52:55
#polling#measurement error#elections
Takeaway1:53:12

Do Not Tolerate Being Bored at Work

Silver's advice combines hard work with refusing prolonged boredom. He specifically tells aspiring journalists to learn how to code and urges graduates to critique conventional wisdom, including beliefs shared by their friends.

  • Coding is valuable preparation for modern journalism
  • Hard work should not require tolerating prolonged boredom
  • Conventional wisdom deserves active criticism
  • Friends can reinforce assumptions that should be questioned

“learn how to code if you want to become a journalist.”

Nate Silver · 1:53:41

“it's a combination I think of of working really hard, but um, but not tolerating yourself being bored at work.”

Nate Silver · 1:53:54
#career#ownership#coding#work