May 4, 2016

Should you have bet on Leicester City?

As you know, Leicester City won the English Premier League this week. At the start of the season, you could get 5000:1 odds on this happening. Twelve people did.

Now, most weeks someone wins NZ Lotto first division, which pays more than 5000:1 for a winning ticket, and where we know the odds are actually unfavourable to the punter. The 5000:1 odds on their own aren’t enough to conclude the bookies had it wrong.  Lotto is different because we have good reasons to know that the probabilities are very small, based on how the numbers are drawn. With soccer, we’re relying on much weaker evidence.

Here’s Tim Gowers explaining why 5000:1 should have been obviously too extreme

The argument that we know how things work from following the game for years or even decades is convincing if all you want to prove is that it is very unlikely that a team like Leicester will win. But here we want to prove that the odds are not just low, but one-in-five-thousand low.

Professor Gowers does leave half the question unexamined, though

I’m ignoring here the well-known question of whether it is sensible to take unlikely bets just because your expected gain is positive. I’m just wondering whether the expected gain was positive.

 

Briefly

  • A historical list of data visualisations, starting in 5500BCE Mesopotamia
  • Selection bias: @_OneRandomTweet retweets one random tweet every few hours, “to remind you that people don’t use Twitter like you do
  • Richard Clark: “The boundaries of New Zealand suburbs and localities is held by the New Zealand Fire Service. For years, the NZFS has refused to provide this data under any terms except a restrictive license, and it has to stop.
  • Outsourcing: Andrew Gelman is disappointed in the NZ Herald, so I don’t have to be.
  • Survivor bias:

Super 18 Predictions for Round 11

Team Ratings for Round 11

The basic method is described on my Department home page.

Here are the team ratings prior to this week’s games, along with the ratings at the start of the season.

Current Rating Rating at Season Start Difference
Crusaders 9.46 9.84 -0.40
Hurricanes 8.37 7.26 1.10
Chiefs 6.23 2.68 3.60
Highlanders 5.85 6.80 -0.90
Waratahs 3.77 4.88 -1.10
Brumbies 2.05 3.15 -1.10
Stormers 1.62 -0.62 2.20
Bulls 0.59 -0.74 1.30
Sharks 0.00 -1.64 1.60
Lions 0.00 -1.80 1.80
Blues -3.88 -5.51 1.60
Rebels -5.29 -6.33 1.00
Cheetahs -7.07 -9.27 2.20
Jaguares -7.24 -10.00 2.80
Reds -8.98 -9.81 0.80
Force -11.93 -8.43 -3.50
Sunwolves -16.26 -10.00 -6.30
Kings -20.55 -13.66 -6.90

 

Performance So Far

So far there have been 78 matches played, 53 of which were correctly predicted, a success rate of 67.9%.
Here are the predictions for last week’s games.

Game Date Score Prediction Correct
1 Chiefs vs. Sharks Apr 29 24 – 22 11.40 TRUE
2 Force vs. Bulls Apr 29 20 – 42 -6.70 TRUE
3 Highlanders vs. Brumbies Apr 30 23 – 10 7.10 TRUE
4 Blues vs. Rebels Apr 30 36 – 30 5.30 TRUE
5 Reds vs. Cheetahs Apr 30 30 – 17 0.60 TRUE
6 Lions vs. Hurricanes Apr 30 17 – 50 -0.50 TRUE
7 Stormers vs. Waratahs Apr 30 30 – 32 2.40 FALSE
8 Jaguares vs. Kings Apr 30 73 – 27 13.40 TRUE

 

Predictions for Round 11

Here are the predictions for Round 11. The prediction is my estimated expected points difference with a positive margin being a win to the home team, and a negative margin a win to the away team.

Game Date Winner Prediction
1 Crusaders vs. Reds May 06 Crusaders 22.40
2 Brumbies vs. Bulls May 06 Brumbies 5.50
3 Sunwolves vs. Force May 07 Force -0.30
4 Chiefs vs. Highlanders May 07 Chiefs 3.90
5 Waratahs vs. Cheetahs May 07 Waratahs 14.80
6 Sharks vs. Hurricanes May 07 Hurricanes -4.40
7 Kings vs. Blues May 07 Blues -12.70

 

NRL Predictions for Round 10

Team Ratings for Round 10

The basic method is described on my Department home page.

Here are the team ratings prior to this week’s games, along with the ratings at the start of the season.

Current Rating Rating at Season Start Difference
Cowboys 12.60 10.29 2.30
Broncos 11.43 9.81 1.60
Storm 6.13 4.41 1.70
Roosters 3.78 11.20 -7.40
Sharks 3.11 -1.06 4.20
Eels 1.45 -4.62 6.10
Bulldogs 0.71 1.50 -0.80
Sea Eagles 0.05 0.36 -0.30
Panthers -0.02 -3.06 3.00
Raiders -0.20 -0.55 0.40
Rabbitohs -1.46 -1.20 -0.30
Dragons -3.59 -0.10 -3.50
Warriors -5.57 -7.47 1.90
Titans -6.92 -8.39 1.50
Wests Tigers -7.13 -4.06 -3.10
Knights -12.68 -5.41 -7.30

 

Performance So Far

So far there have been 72 matches played, 40 of which were correctly predicted, a success rate of 55.6%.
Here are the predictions for last week’s games.

Game Date Score Prediction Correct
1 Rabbitohs vs. Wests Tigers Apr 28 22 – 30 7.90 FALSE
2 Eels vs. Bulldogs Apr 29 20 – 12 2.90 TRUE
3 Panthers vs. Raiders Apr 30 19 – 18 0.00 TRUE
4 Roosters vs. Knights Apr 30 38 – 0 16.50 TRUE
5 Sea Eagles vs. Cowboys Apr 30 28 – 34 -10.20 TRUE
6 Warriors vs. Dragons May 01 26 – 10 -0.20 FALSE
7 Titans vs. Storm May 01 0 – 38 -5.70 TRUE
8 Sharks vs. Broncos May 01 30 – 28 -6.50 FALSE

 

Predictions for Round 10

Here are the predictions for Round 10. The prediction is my estimated expected points difference with a positive margin being a win to the home team, and a negative margin a win to the away team.

Game Date Winner Prediction
1 Dragons vs. Raiders May 12 Raiders -0.40
2 Eels vs. Rabbitohs May 13 Eels 5.90
3 Panthers vs. Warriors May 14 Panthers 5.60
4 Storm vs. Cowboys May 14 Cowboys -6.50
5 Broncos vs. Sea Eagles May 14 Broncos 14.40
6 Knights vs. Sharks May 15 Sharks -12.80
7 Wests Tigers vs. Bulldogs May 15 Bulldogs -7.80
8 Titans vs. Roosters May 16 Roosters -7.70

 

May 3, 2016

Bright lights, big city

From NewsHub: “NZ’s most violent city spots revealed”

The approximately one square kilometre grid follows part of Queen St and includes the area around the Sky Tower and casino, as well as the eclectic entertainment strip of Karangahape Rd.

Last calendar year 550 people were the victims of assaults, sexual attacks and robberies in this area.

That’s a rate for these violent crimes more than six-and-a-half times the national average.

The other top locations included two more areas in central Auckland, and a chunk of central Wellington including Cuba St and Courtenay Place.  One thing these four (and quite possibly some of the other top locations) have in common is that a lot of people who don’t live there spend time there — and some of these people commit or suffer violent crimes.  Auckland Central West has a very high violent crime rate for its local population, but some of that is because the relevant population isn’t just the local residents, it’s workers by day and revellers by night.   The area is presumably more dangerous than the national average, but it’s not six and a half times more dangerous.

May 2, 2016

Stat of the Week Competition: April 30 – May 6 2016

Each week, we would like to invite readers of Stats Chat to submit nominations for our Stat of the Week competition and be in with the chance to win an iTunes voucher.

Here’s how it works:

  • Anyone may add a comment on this post to nominate their Stat of the Week candidate before midday Friday May 6 2016.
  • Statistics can be bad, exemplary or fascinating.
  • The statistic must be in the NZ media during the period of April 30 – May 6 2016 inclusive.
  • Quote the statistic, when and where it was published and tell us why it should be our Stat of the Week.

Next Monday at midday we’ll announce the winner of this week’s Stat of the Week competition, and start a new one.

(more…)

April 29, 2016

Looking up the index

 

Q: Did you hear that Auckland housing affordability is better now than when the government came to office?

A: No. Surely not.

Q: That’s what Nick Smith says: listen, it’s at 4:38. Is it true?

A: Up to a point.

Q: Up to what point?

A:  As he says, the Massey University Housing Affordability Index for February 2016 is lower than it was for November 2008, for Auckland and everywhere else in the country. For Auckland it was 38.44 then and is 33.8 now.

Q: But The Spinoff says one of the people behind the Index says Nick Smith is wrong, that housing isn’t more affordable than it was then.

A: Indeed she does. That’s because housing isn’t more affordable.

Q: But you said the index was lower?

A: Yes, it is.

Q: And lower is supposed to be better?

A: Yes.

Q: But how can the Housing Affordability Index be lower when housing isn’t more affordable? What is the index?

A: If it’s the same as it was is 2006 (which would make sense) it’s median selling price multiplied by a weighted-average interest rate and divided by the mean individual weekly earnings.

Q: Can you translate that?

A: Roughly,  the number of weeks of average earnings you’d need to pay the first year’s interest on a 100% mortgage.

Q: So if it’s 34, and you’ve got two people making the average, it’s 17 weeks each out of 52 going to mortgage interest? About 32% of income?

A: That’s right, only you don’t get 100% mortgages, so it’s more like 26% of income. And there’s taxes and insurance and you actually pay off a bit of the principal even in the first year, so it’s more complicated. But it’s a simple summary of the interest cost.

Q: And that’s lower now than in November 2008?

A: So it seems. I wasn’t living in New Zealand then, but it looks like mortgage interest rates were near 9%. The combination of the increase in incomes and the fall in interest rates has been slightly more than the increase in house prices, even in Auckland.

Q: But what if rates go back up?

A: Then a lot of houses will retroactively become much less affordable.

Q: And what about saving for down payments? That’s what all the snake people have been complaining about, and low interest rates don’t help there.

A: Down payments don’t go into the affordability index

Q: But they go into actual affordability!

A: Which is presumably why the Minister was talking about the affordability index.

 

Bar chart of the week

From the IMF, using OECD data, (via Sam Warburton)

chart2_

Bar charts should start at zero (and probably shouldn’t  have distracting house/arrow/tree reflections in the background), but this graph would look even worse if the y-axis went down to zero. The problem is that ‘zero’ isn’t 0 for this sort of measurement.  The index is the price:income ratio now, divided by the price:income ratio in 2010, multiplied by 100.  The “no change” value is 100, which suggests using that for the floor of the bars.  Making the bars wider relative to the spaces gives easier comparisons and makes the graph less busy.  The colour scheme isn’t ideal for dichromats, but it only reinforces the information, it’s not needed to interpret anything.

 

price2income

The next step, as Sam suggested on Twitter, would be to give up on the ‘index’, which is really economist jargon, and just describe the change in %.  He also suggesting putting the two labels in colour (which required some fiddling: for the text colour to look like the bar colour it has to actually be darker).

price2

One might also go back to the full names of the countries, but I quite like the abbreviations.

 

April 28, 2016

Walkability

Most of Auckland is within walking distance of a school: there are over 500 schools in the 560 km2 of Auckland’s urban area. That’s usually regarded as a Good Thing, and Healthy. Auckland Transport’s “walking school bus” program takes advantage of it to get kids more active and to get cars off the roads. The coverage is pretty impressive: in this map by Stephen Davis, the circles show a 800m (half-mile, 2 km2 ) area around each school:

dense

However, as a story at Stuff notes,  if most everywhere in Auckland is close to a school, the schools are going to be close to other establishments.  With a school on most square kilometres of urban land, there will be shops in the square kilometre around most schools selling fast food, or junk food.

That’s going to be even more true in denser, more walkable cities elsewhere, from Amsterdam to New AmsterdamYork.  “Near schools” isn’t a thing in cities. To reduce the number of these shops near schools, you have to reduce them everywhere.

This isn’t to say that all restrictions on fast-food sales are unreasonable, but having lots of things in a relatively small area is hard to avoid in cities. It’s how cities work.

Marking beliefs to market

Back in August, I wrote

Trump’s lead isn’t sampling error. He has an eleven percentage point lead in the poll averages, with sampling error well under one percentage point. That’s better than the National Party has ever managed. It’s better than the Higgs Boson has ever managed.

Even so, no serious commentator thinks Trump will be the Republican candidate. It’s not out of the question that he’d run as an independent — that’s a question of individual psychology, and much harder to answer — but he isn’t going to win the Republican primaries.

Arguably that was true: no serious commentator, as far as I know, did think Trump would be the Republican candidate.  But he is going to win the Republican primaries, and the opinion polls haven’t been all that badly wrong about him — better than the experts.