Getting a representative sample is the biggest challenge facing opinion pollsters.
Getting a representative sample is the biggest challenge facing opinion pollsters.
Getting a representative sample is the biggest challenge facing opinion pollsters.
Getting a representative sample is the biggest challenge facing opinion pollsters.

When hard-core numbers fall victim to human nature


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The two US presidential candidates and their supporters will not be the only ones fretting about the vote count during tomorrow's election. Opinion pollsters will also be nervously awaiting the final result, hoping that the abstruse art of statistical sampling will have worked its magic again, and turned the responses of a tiny proportion of the population into a reliable guide to the views of an entire nation. The idea that a poll of a few thousand people can predict even remotely well the voting intentions of over 200 million is somewhat counter-intuitive. Yet as long as those polled are both sufficient in number and representative, statistical theory shows the results will be reliable up to a point - and even gives an estimate of that reliability. As common sense suggests, the bigger the sample, the smaller the margin of error. More precisely, if the poll estimates the percentage share of the vote using a sample of N people, then the percentage margin of error is given by the formula 100 divided by the square-root of N. For the typical opinion poll, which is based on around 1,000 people, this means the margin of error in the share of the vote is around plus or minus 3 per cent. So what are we to make of the decidedly disparate results of various polls published last week? One survey based on 1,198 likely voters had Barack Obama leading John McCain by 15 percentage points. Even with that plus or minus 3 per cent margin of error for those two percentages, that's a clear lead for Mr Obama. But another poll carried out around the same time and based on a similar size of sample found Mr Obama leading by just 5 percentage points. As Mr Obama's true share could be 3 per cent lower and Mr McCain's could be 3 per cent higher, a 5 per cent difference is too close to call. So which do we believe? The most obvious reason for the disparity is that one or both of the polls is not truly representative. Getting a representative sample is the biggest challenge facing opinion pollsters, and one which keeps them awake on the eve of many elections. Over the years they have identified many of the causes, and do their level best to weed them out. At the top of their list is making sure they do not include the views of people who are not going to vote. Research has shown that people who vote have different political views from those who do not. Including non-voters in a poll then can give a very misleading view of how the vote will actually turn out. Undecided voters are barely less problematic. Pollsters try hard to persuade those they interview to opt for one candidate or another, but some people remain undecided - leaving the pollsters with no choice but to try to guess which way they will vote. Not surprisingly, the pollsters sometimes get it badly wrong. In 1992, Gallup decided to allocate undecided voters to Bill Clinton and ended up overestimating the size of his victory by nearly 6 percentage points as many of the undecided in fact voted for Ross Perot. The most controversial issue of all is one of simple honesty. Are those being polled actually telling the truth about how they will vote? Over recent weeks there has been much discussion of the so-called Bradley Effect, named after the eponymous African-American who lost the 1982 race for the governership of California despite being ahead in opinion polls prior to the vote. According to some, Mr Bradley fell victim to voters who felt uncomfortable telling pollsters they would not vote for a black candidate, and who voted for his white rival once in the polling booth. Opinions are divided over whether Mr Obama will face a similar fate. Some psephologists insist the Bradley Effect no longer exists in these racially enlightened times; some even doubt whether it ever existed, and blame faulty handling of the undecided vote instead. But others point to a more subtle explanation - and one that may also explain another notorious failure of opinion polling, which took place in the UK general election of 1992. Seemingly against all the odds, the Conservative prime minister John Major was returned to power, having reversed the one per cent lead attributed by opinion polls to his rival into a convincing eight per cent victory. At the time, much of the blame for this humungous discrepancy between the polls and reality was directed at simple voter dishonesty. Major had promised tax cuts if re-elected, and it was argued that voters felt embarrassed admitting to pollsters that they were keen on such a policy, but had no qualms voting for it. Yet as with the Bradley Effect, some psephologists think a more subtle effect was at work - and one with the power to undermine any poll. In the end, for all their attempts to get a representative sample, opinion pollsters can only include the views of those they actually talk to. But what about all those who simply wave away the pollsters as they approach, or slam down the phone? Some psephologists argue that both the Bradley Effect of 1982 and the Shy Tory Effect of a decade later were less to do with dishonesty than with the political mores of those who refuse to take part in polls. Research by the respected US polling expert Andrew Kohut has uncovered evidence that those who refuse to take part in polls tend to have poorer, less well-educated backgrounds. As that is also the profile of those more likely to harbour racist views, it could help explain the Bradley Effect. Whether such people are also keener on tax cuts is not clear; as Mr Kohut discovered, finding out what they think about anything is, by definition, very hard work. What is clear is that unless Mr Obama had made his tax-cutting plans clear to poor, uneducated whites, he could give pollsters a very nasty shock tomorrow night. Robert Matthews is Visiting Reader in Science at Aston University, Birmingham, England

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Ahmed Saadawi
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Cricket World Cup League Two
Oman, UAE, Namibia
Al Amerat, Muscat
 
Results
Oman beat UAE by five wickets
UAE beat Namibia by eight runs
Namibia beat Oman by 52 runs
UAE beat Namibia by eight wickets
UAE v Oman - abandoned
Oman v Namibia - abandoned

MATCH INFO

Real Madrid 2

Vinicius Junior (71') Mariano (90 2')

Barcelona 0

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  • Golden circle - Dh995
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The biogs

Name: Zinah Madi

Occupation: Co-founder of Dots and links

Nationality: Syrian

Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2

Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”

 

Name: Razan Nabulsi

Occupation: Co-founder of Dots and Links

Nationality: Jordanian

Family: Married, Mother of Yahya, 3.5

Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”

The biog

From: Upper Egypt

Age: 78

Family: a daughter in Egypt; a son in Dubai and his wife, Nabila

Favourite Abu Dhabi activity: walking near to Emirates Palace

Favourite building in Abu Dhabi: Emirates Palace

Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes. 
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com

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