I have a work colleague who not only is a tremendous negotiator and contracts’ drafter but also has a great sense of humor and manages in his free time late in the night to set up a contest for office staff to try to guess winners, matches’ scores, top scorers, etc., of major international soccer competitions. The 2014 FIFA World Cup in Brazil, which will start tomorrow, could not be missed. Nacho managed to set up the contest in time.
To set up the background as to how I have approached the game of forecasting this World Cup:
- I had written a review of the book “Soccernomics“, which among other things advocates the use of data in order to make decisions in relation to football transfer market, forecasting, etc. This book relies somewhat heavily in “Moneyball” another book which I read some months ago with a similar scope but with baseball as the theme sport.
- When the draw of the World Cup took place last December, I wrote a couple of blog posts discussing what was the so-called “group of death” basing the analysis on FIFA and ESPN rankings.
- During the last year, I read a couple of books which approach how we make decisions and how to remove different kind of biases from the thought processes of making them: “Thinking Fast and Slow” (by the 2002 winner of the Nobel Prize in Economics Daniel Kahneman) and “Seeking Wisdom“.
- Finally, last year I followed the open course “A Beginner’s Guide to Irrational Behavior” by Dan Ariely (though I missed the last exam due to my honeymoon and could not get credit for it).
Having shared this background, you may understand that I tried to remove all the beauty of guessing and my football “knowledge” to the forecasting process. I rather made use of ESPN Soccer Power Index (SPI) ranking, introduced by the economist Nate Silver. I used its offensive and defensive scores plus the tip indicating that in competitive matches the defensive factor tends to be slightly more important (see “A Guide to ESPN’s SPI rankings”).
Once I plugged in the numbers from the index and used the referred tip on the defensive side, I built a simple model to guess each of the World Cup matches. Once you take this approach you will find that the model gives you plenty of results such as Nigeria 1.32 – 1.53 Bosnia… What to do with it? When the result was very tight I resolved it as a draw, otherwise a victory for the team with the highest score.
In very few instances I forecast that a team would score 3 or more goals in a match. I bore in mind that in the 2010 World Cup 80% of the matches ended up with scores of 1-0 (26% of the matches), 2-1 (15%), 0-0, 1-1 or 2-0 (each 13%). That a team scores more than 3 goals in a match will certainly happen in some games, but I did not bother to guess in which ones, the odds are against.
The prize pot of the game organized by this colleague is not particularly big (few hundreds euros). The main point of the game is enjoying the chit-chat with work colleagues. My second main point is putting this rational approach to work and see how it fares.
Finally, what did I forecast?
A World Cup won by Brazil against Argentina in the final. With Spain beating Germany for the third place (in the penalties). For my English readers: England defeated by Colombia in the 1/8 of final. For the ones from USA, it doesn’t make the cut from the group phase. We will see along this month how well do I fare.