Watch the talk ➟ http://bit.ly/1NJGRcb
2008 was a historic year in many ways, perhaps the most prominent being the election of the first African American president. But 2008 also saw an unlikely hero emerge amongst the record setting presidential race... Nate Silver and his astonishingly accurate prediction of its results. More important than Nate's remarkable result however was the attention it drew to the potential of data and the importance of uncertainty (through bayesian statistics). And it was in that moment that our modern incarnation of data journalism was born (though ironically the field dates back to an attempt to predict the 1952 presidential election) with Nate's (now famous) 538 blog.
In this talk I will walk through the approach that made Nate so successful in 2008, test its efficacy in predicting the early 2016 primary results, and show how these (relatively) simple concepts can be applied in novel ways to tangential fields to great effect (for fun and profit) by estimating the time to failure for industrial machines in our connected world of the IoT.
13. THE THEORY BEHIND THE MAGIC
Courtesy of 538 and Drew Linzer (Votamatic)
Jonathan Dinu // April 13th, 2016 // @clearspandex
14. CHALLENGES
> Historical Predictions susceptible to Uncertainty
> Sparse pre-election Poll Data
> Sampling Error and House Effects Bias Polls
Jonathan Dinu // April 13th, 2016 // @clearspandex
15. WHAT DREW (AND NATE) DID DIFFERENTLY
> State level vs. National Polls
> Online Updates as more data become available
> Not All Polls are Created Equal (weights/averages)
> (Probabilistic) Forecasting in addition to Estimation
Jonathan Dinu // April 13th, 2016 // @clearspandex
21. STATES + TIME + TRANSITIONS
Jonathan Dinu // April 13th, 2016 // @clearspandex
22. GRAPHICAL MODELS
> Assess Risk (uncertainty) as
Probability of Failure
> Unobservable (hidden) Failure States
> Proactive/Early Prediction
> Interpretable Latent Properties
> Online Algorithm (iteratively improve)
Jonathan Dinu // April 13th, 2016 // @clearspandex
23. KEY IDEAS
> Uncertainty
> Point vs. Distribution (or confidence intervals)
> Bayesian vs. Frequentists methods
> Temporal variability
All models are wrong, but some models are useful... or
something
Jonathan Dinu // April 13th, 2016 // @clearspandex
25. IOT IMPACT: DETECTING MACHINE FAILURES
> Historical Structural Predictions susceptible to Uncertainty
(Supervised Learning)
> Sparse pre-election Poll Data (costly to measure)
> Sampling Error Biases Polls Inspections
(prediction in the absence of data)
> Online Updates as more data become available
> Not All Polls sensors are Created Equal (weights/averages)
> (Probabilistic) Forecasting in addition to Estimation
Jonathan Dinu // April 13th, 2016 // @clearspandex
33. REFERENCES
> The Signal and the Noise
> Data Journalism Handbook
> Dynamic Bayesian Forecasting of Presidential Elections in the States (Drew A.
Linzer)
> Time for Change model (Alan Abramowitz)
> Baysian Data Analysis Gelman
> Causality Judea Pearl
> 538: How we are Forecasting the 2016 Primaries
> Predicting Time-to-Failure of Industrial Machines with Temporal Data Mining
Jonathan Dinu // April 13th, 2016 // @clearspandex