Michigan will win if they can just play smart and consistent, which they haven't all year, but if they can at least force more turnovers, commit fewer penalties, and the like, that may be enough. I think they're pretty evenly matched.
That said, they have a 10 game home win streak since the beginning of last year, while Notre Dame hasn't played (much less won) many big road games in recent years. I didn't see their USC game, but I wasn't that impressed with how they looked against Louisville or Virginia, either.