is Bad H1 is True Product is Good Accept Null Hypothesis (Don’t ship product) Right decision Type II Error (wrong decision) Reject Null Hypothesis (Ship Product) Type I Error (wrong decision) Right decision
to minimizing Type I and II errors for one problem, we will have fewer resources for other problems. • Few organizations makes a single decision, we usually make many of them. • Acquiring more data, investing more time into problems has diminishing marginal returns.
what side of the bias-variance tradeoff we'd like to be on. • Common mistakes are: • Using a model that’s too complex for the data. • Focusing too much on algorithms instead of gathering the right data or correctness.
how variations in analytical choices affect results (Silberzahn et al. 2017) • 29 teams involving 61 analysts used the same dataset to address the same research question • Are soccer ⚽ referees are more likely to give red cards to dark skin toned players than light skin toned players?
random sub-samples s1 s2 s500 Compute statistics or estimate model parameters … } 0.0 2.5 5.0 7.5 -2 -1 0 1 2 Statistic Count Get a distribution over statistic of interest (usually the prediction) - take mean - CIs == 95% quantiles - SEs == standard deviation
we making? • Where did the come from? Prevent errors! • Use a reasonable and reproducible process. • Test your analysis as you test your code. Estimate uncertainty! • Models that estimate uncertainty are more useful than those that don’t. • They facilitate better learning and experimentation.