We have seen how survey methodologies based on the Central Limit Theorem work in forecasting. As you know already, CLT assumes three basic properties – independence, randomness, and the requirement to have the same underlying distribution. Together they are known as independent and identically distributed (i.i.d.).
The most common example of the system at work is election forecasting. Unlike the case with rolling dice or tossing coins, election forecasting is all about surveying the real world, and sometimes they go wrong. This time we examine some of the common reasons why the pollsters get it wrong.
Not Enough Samples
The simplest one is, of course, when there are too few numbers. You have seen that the spread of uncertainty is inversely related to the square root of the number of samples. I doubt it is a big concern; pollsters often choose sample sizes correctly, and the minimum number can be as few as 30.
Selection Bias
An example of selection bias was the calls via landlines for surveys during the US presidential polls in 2008 and 2012. Pew Research has found that the respondents of landlines, that too in the evening time when the pollsters typically make the call, were Republican-leaning. The opposite was true for cell phone users, who also happened to be the younger crowd and Obama supporters!
The second type of selection bias is also known as the house effect. Here the selection bias originates from the polling firms themselves. It happens when the polling firm has a favourite candidate and therefore publishes survey results that favour its liking.
Bradley Effect
Sometimes people simply lie, especially when their stands are at odds with socially accepted values. A classic case was in 1982 when the African-American candidate Tom Bradley, predicted to be the winner of the California governor’s race by exit polls, was lost. The respondents had clear racial preferences for the white candidate but did not want to admit that race played a role in their selection.
Selection Bias and Cell Phones
Cell Phone Users vs Landline users
House Effects of Polling Firms
Bradley Effect
Race Questions in Election