YouTube transcript (VFMcGdWp0MQ) — Transcript
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- 0:07[Music]
- 0:17hello thank you for watching and welcome
- 0:19to the next video in my series on basic
- 0:21statistics now as usual a few things
- 0:24before we get started number one if
- 0:27you're watching this video because you
- 0:28were struggling in a class right now I
- 0:30want you to stay positive and keep your
- 0:32head up if you're watching this it means
- 0:34you've accomplished quite a bit already
- 0:36you're very smart and talented and you
- 0:38may have just hit a temporary rough
- 0:40patch now I know with the right amount
- 0:42of hard work practice and patience you
- 0:46can get through it I have faith in you
- 0:48many other people around you have faith
- 0:50in you so so should you number two
- 0:54please feel free to follow me here on
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- 0:59LinkedIn
- 1:00that way when I upload a new video you
- 1:02know about it and it's always nice for
- 1:05me to connect with people who watch my
- 1:06videos online wherever in the world you
- 1:09may happen to be now on the topic of the
- 1:12video if you like it please give it a
- 1:15thumbs up share it with classmates or
- 1:17colleagues or put it on a playlist
- 1:19because that does encourage me to keep
- 1:21making them for you on the flip side if
- 1:23you think there is something I can do
- 1:25better please leave a constructive
- 1:27comment below the video and I will try
- 1:29to take this idea is into account when
- 1:31to make new ones for you and finally
- 1:34just keep in mind that these videos are
- 1:36meant for individuals who are relatively
- 1:38new to snats so I'm just going over
- 1:41basic concepts and I will be doing so in
- 1:44a very slow deliberate manner not only
- 1:48do I want you to know what's going on
- 1:50but also why and how to apply it so all
- 1:53that being said let's go ahead and get
- 1:57started so this video is the next in our
- 2:00series on hypothesis formulation and
- 2:03eventually hypothesis testing and like
- 2:06the last videos it's sometimes a concept
- 2:09that can give intro stat students
- 2:11headaches it can drive them crazy and
- 2:14the reason is that this concept runs
- 2:17counter to how we usually think about
- 2:19our everyday lives and of course this is
- 2:22the concept of type one and type two
- 2:25errors in hypothesis formulation and
- 2:28testing now remember in previous videos
- 2:31we talked about what hypotheses are we
- 2:33talked about how to set them up pull
- 2:35data out of problems and then set up our
- 2:37null hypothesis and our alternative
- 2:40hypothesis now remember the null
- 2:42hypothesis is what we assume to be true
- 2:46it's the status quo it's the information
- 2:48we are given or we again we assume to be
- 2:50the case the alternative is where we go
- 2:54next if we have to reject the null
- 2:57hypothesis so if we have to reject our
- 3:00assumption then we proceed on to the
- 3:03alternative now one thing we know by
- 3:05this point is that stats is never
- 3:08certain it's never 100% perfect so the
- 3:12way this usually works as far as
- 3:14hypothesis go we set up our hypothesis
- 3:17we go out and collect a sample we do
- 3:19some analysis on that sample and then we
- 3:22reach some conclusion about our
- 3:26hypothesis so the question is does our
- 3:29conclusion
- 3:30from our
- 3:31analysis match the actual state of
- 3:36reality so remember we're basing that
- 3:38conclusion off some sample we took and
- 3:41then we either reject or fail to reject
- 3:44our null hypothesis but the question is
- 3:48does our conclusion match the actual
- 3:51state of reality now we know it's not
- 3:55going to happen 100% of the time and
- 3:58that in a nut check
- 4:00is type one and type two error does our
- 4:04conclusion in our hypothesis test due to
- 4:06our analysis match the actual state of
- 4:11reality now this is not just some
- 4:13academic distinction here in real life
- 4:17in real studies in real research the
- 4:20type one and type two errors can have
- 4:23literally life or death consequences and
- 4:27I'm not OV exaggerating so in the
- 4:29examples I use in this video I'm going
- 4:31to show you that as starkly as I can now
- 4:34the way I'm going to proceed is to show
- 4:36you a couple of non-statistical real
- 4:39world examples that exhibit the idea of
- 4:42type one and type two error and then we
- 4:45will proceed into more formal
- 4:47statistical ways of putting it so all
- 4:50that being said let's go ahead and look
- 4:52at our first nonstatistical real world
- 4:57example now I call this the fire alarm
- 5:00hypothesis and unfortunately it's
- 5:02something a lot of us have to deal with
- 5:04at some point in our lives or in
- 5:06something similar you know similar
- 5:08situation and it goes something like
- 5:09this let's say you're going down the
- 5:12hallway at work or school sort of doing
- 5:14your own thing everything is normal as
- 5:17usual but you encounter a sudden smell
- 5:21of smoke like something's
- 5:24burning now you know that may mean a
- 5:27serious fire is taking place in in the
- 5:30building or it could be nothing serious
- 5:33maybe someone burned popcorn or
- 5:35something else in the microwave in the
- 5:37kitchen or cafeteria or wherever else
- 5:39you might be but the question is what do
- 5:41you do next you have to make some
- 5:43decision on what you're going to
- 5:47do so let's take a look at what might
- 5:50happen if you think the Smoky smell is
- 5:52nothing serious you may decide that your
- 5:54assumption that everything is normal is
- 5:57correct and therefore you will not pull
- 6:01the smoke alarm or the fire alarm so
- 6:03maybe someone burned something in the
- 6:05kitchen of course that's annoying but
- 6:07it's not a serious fire so you would
- 6:10just proceed on like everything was okay
- 6:13and of course you will not pull the fire
- 6:16alarm for that now if you think the
- 6:18Smoky smell is due to a serious fire you
- 6:22may reject your assumption that
- 6:24everything is normal and then you will
- 6:27pull the fire alarm so you have to reach
- 6:30some conclusion based on the evidence
- 6:33around you about the state of reality
- 6:37it's either a not serious fire or it's a
- 6:41very serious fire and then you have to
- 6:43decide what you're going to
- 6:47do so let's look at what might go wrong
- 6:49in this situation so of course you smell
- 6:51the smoke and you think to yourself This
- 6:54is not normal so you reject the
- 6:58assumption that everything is okay you
- 7:01reject your null
- 7:03hypothesis therefore you go ahead and
- 7:06pull the fire alarm so you rejected your
- 7:09null hypothesis that everything is
- 7:11normal and then you went ahead and
- 7:13pulled the fire alarm so the building is
- 7:15evacuated and the fire department
- 7:17arrives to
- 7:19investigate now after the investigation
- 7:22it is determined that there was no
- 7:24serious fire you quote falsely pull
- 7:30the fire
- 7:31alarm now here's the way we interpret
- 7:34that when you rejected your assumption
- 7:37that everything was okay so you looked
- 7:40at the situation you said this is not
- 7:41normal I'm going to reject my assumption
- 7:43that everything is normal and then you
- 7:46proceeded so when you rejected your
- 7:48assumption that everything was okay when
- 7:50it really was okay because there was no
- 7:54fire you committed type one error or in
- 7:58this case a false alarm so let's talk
- 8:02about type 1 error more formally so type
- 8:041 error is rejection of the Assumption
- 8:08or rejection of the null hypothesis when
- 8:12it should not have been
- 8:14rejected so in the Fire case you
- 8:18rejected your assumption that everything
- 8:20was normal but the reality was
- 8:23everything was okay so type 1 error is
- 8:26rejecting the N hypothesis when it
- 8:28should not be rejected
- 8:30you can think of it as incorrectly
- 8:32rejecting the null
- 8:34hypothesis in this case a false
- 8:38alarm and again this is a real world
- 8:40situation but is a perfect example of
- 8:43what type one error is rejecting the
- 8:46null when it should not have been
- 8:52rejected now let's look at what else
- 8:54might go wrong let's say you smell smoke
- 8:57and you think oh it's probably someone
- 8:59who burns their lunge in the microwave
- 9:02no big deal so you go ahead and just
- 9:04proceed along your way therefore you did
- 9:08not reject your assumption that
- 9:10everything is okay you upheld your null
- 9:13hypothesis you just sort of concluded
- 9:16it's not nothing serious so you or not
- 9:18something serious so you went ahead and
- 9:19just went on your way but let's say
- 9:23there is indeed a serious fire now no
- 9:26one is injured luckily but the entire
- 9:29building does burn to the
- 9:31ground so when you failed to reject your
- 9:35assumption that everything is okay when
- 9:37it really was not okay you committed
- 9:42type two
- 9:43error so let's formally Define this and
- 9:46then we'll compare the two so type two
- 9:48error failure to reject the Assumption
- 9:51or failure to reject the null hypothesis
- 9:55when it should have been
- 9:57rejected so incorrect ly not rejecting
- 10:01the null
- 10:02hypothesis so think about type one type
- 10:06one is when we reject the null
- 10:10hypothesis
- 10:12incorrectly type two is when we fail to
- 10:17reject the null hypothesis
- 10:20incorrectly so in the first case we pull
- 10:23the fire alarm when there was no fire in
- 10:26the second case we did not pull the fire
- 10:29alarm even though there was a fire so
- 10:33again we'll do some other examples but
- 10:35this sort of sets the stage for
- 10:37basically what type one and type two
- 10:40error as it relates to our conclusion we
- 10:43reach and the actual state of
- 10:51reality now we can set this up as a
- 10:53little hypothesis so our null hypothesis
- 10:55was the smoke is annoying but not
- 10:58serious everything is okay as usual
- 11:00there's no serious fire the alternative
- 11:04would be that smoke is evidence of a
- 11:06serious fire everything is not okay as
- 11:09usual there is a serious fire now we can
- 11:13set up a little hypothesis table here so
- 11:16on the left hand side we have the
- 11:18conclusion we reach and then on the top
- 11:23we have the actual condition or the
- 11:25actual state of reality so let go ahead
- 11:29and fill this in with some
- 11:32information now in the conclusion side
- 11:34we have we do not reject the null
- 11:37hypothesis so no serious fire or we
- 11:42reject our null hypothesis that
- 11:44everything is okay and there is some
- 11:47serious fire so those are the two
- 11:49conclusions we could reach in this
- 11:51situation now the actual condition of
- 11:55reality is there is no serious fire or
- 11:58there is is a serious
- 12:02fire now we notice that there are two
- 12:05correct conclusions here so if we do not
- 12:08reject the null hypothesis and there's
- 12:11no serious fire and the state of reality
- 12:14is that there is no serious fire that is
- 12:17a correct
- 12:19conclusion now if we reject the null
- 12:21hypothesis that everything is normal and
- 12:23there is a serious Fire based on our
- 12:26evidence and reality is that there is a
- 12:29serious fire that is also a correct
- 12:34conclusion so you can see are two
- 12:36correct conclusions there now the
- 12:38question is where is the type one and
- 12:41type two error in this
- 12:44chart well they go here so let's look at
- 12:47the type one error situation first so in
- 12:51the type 1 error we reach a conclusion
- 12:54where we reject the null hypothesis so
- 12:57in this case we re reject the assumption
- 13:00that everything is normal and we think
- 13:03there is a serious fire going on but the
- 13:06fire department arrives and they
- 13:09determine the actual condition is that
- 13:12there is no serious fire so therefore
- 13:15our conclusion does not match the actual
- 13:19reality now let's look at type two error
- 13:23so in type two error our conclusion was
- 13:26that we did not reject our null
- 13:28hypothesis and therefore we don't think
- 13:30there's a serious fire going on but the
- 13:33reality is there is a serious fire going
- 13:36on so we have a disconnect between our
- 13:38conclusion and the actual state of
- 13:41things so you can see that we have two
- 13:43correct conclusions and two errors type
- 13:46one error and type two
- 13:50error now in general the real world
- 13:53consequences of a type 2 error are much
- 13:56greater in this case a type two error
- 13:59error May mean the loss of property or
- 14:02even lives so think about this what
- 14:05happens if we commit a type one error in
- 14:07this case well we think there's a really
- 14:11serious fire so we pull the fire alarm
- 14:14that gets everyone out of the building
- 14:16and it brings the fire department to the
- 14:19location but it turns out there's no
- 14:22serious
- 14:23fire well pulling the fire alarm is
- 14:26going to be a very big inconvenience to
- 14:28everyone in the building but we pulled
- 14:32it we pulled the fire alarm because we'd
- 14:34rather be safe than sorry right so the
- 14:37minor inconvenience of the fire drill is
- 14:41no match of the consequences of type two
- 14:44error so look at type two we don't
- 14:47reject our null hypothesis we think
- 14:50there's no serious fire going on when in
- 14:52fact there is a serious fire so we don't
- 14:56pull the fire alarm what can the what
- 14:59can the consequences be here well if no
- 15:02one catches it in time the building
- 15:05could continue to burn because there is
- 15:07a serious fire and it could mean the
- 15:09loss of course property and lives so
- 15:12while the type one error in this case is
- 15:15a real world inconvenience the type two
- 15:18error can cost property and lives and
- 15:21that pattern tends to repeat itself
- 15:25throughout these examples
- 15:30so let's look at another example and I
- 15:32call this the andon hypothesis now
- 15:35you're probably thinking what is that
- 15:37well here's what it is in a
- 15:39manufacturing system such as the Toyota
- 15:41production system so Toyota the car
- 15:44company and other lean systems line
- 15:47workers have the power and indeed the
- 15:50responsibility to stop the entire
- 15:52production line when they notice a
- 15:55serious problem and this is done by
- 15:58pulling what's called an andon cord so
- 16:01you can see in these pictures all along
- 16:03the production line there's a cord like
- 16:05you might see on a bus or even a train
- 16:07and if they notice something is
- 16:09seriously wrong the worker is supposed
- 16:12to is actually required in this
- 16:14environment to pull it that will stop
- 16:17the entire production line dead in its
- 16:20tracks until that situation is
- 16:26resolved now the assumption is that the
- 16:28production line is running correctly
- 16:31this is the minute-by-minute null
- 16:32hypothesis so as things run the
- 16:35assumption is everything is running
- 16:37smoothly everything is running correctly
- 16:39now when a worker notices a defect he or
- 16:42she has a choice to make should they
- 16:45pull the chord or
- 16:49not if the endon chord is pulled the
- 16:53worker is rejecting the assumption that
- 16:55the process is error free they are
- 16:59rejecting the null hypothesis they are
- 17:01rejecting the assumption that everything
- 17:03is okay if the core is not pulled then
- 17:08the worker is not rejecting the
- 17:10assumption that the process is error
- 17:12free thus maintaining the null
- 17:14hypothesis and the production line
- 17:16continues to run so it's all about
- 17:19rejecting or not rejecting the
- 17:21assumption that everything is
- 17:26okay now what if the chord is P which is
- 17:30a rejection of the null hypothesis but
- 17:33nothing is actually wrong with the
- 17:36production process again this is sort of
- 17:39a false alarm
- 17:41situation in this case the worker quote
- 17:44committed a type one error they reject
- 17:48the null hypothesis incorrectly they
- 17:51rejected the null hypothesis that
- 17:53everything was okay
- 17:56incorrectly so type one error again is a
- 17:59wrongful rejection of the null
- 18:01hypothesis when it should not be
- 18:03rejected now something about this in the
- 18:06Toyota production system and in similar
- 18:09Lean Manufacturing Systems this is
- 18:12actually encouraged this is perfectly
- 18:16okay so if the worker thinks there is
- 18:19something wrong they are supposed to
- 18:21they are required to reject their null
- 18:25hypothesis reject the assumption that
- 18:27everything is going okay pull the cord
- 18:30and stop the production line they are
- 18:32not supposed to worry about whether or
- 18:35not they are correct or incorrect and
- 18:39that goes to the idea of the difference
- 18:41in the real world consequences between
- 18:43type 1 and type two error which we'll
- 18:45talk about here in a minute but actually
- 18:48this type one error is okay in this type
- 18:52of production
- 18:53[Music]
- 18:55system now what if the cord is not
- 18:57pulled thus supporting the null
- 19:00hypothesis but something actually is
- 19:03wrong with the production process so
- 19:06often times a worker or sometimes a
- 19:08worker might be afraid to pull that cord
- 19:12because they don't want to be blamed for
- 19:14stopping production and this is
- 19:16especially true in American
- 19:19Manufacturing Systems where at least
- 19:22previously to Toyota coming onto the
- 19:24scene the idea was to produce as much as
- 19:26possible as fast as possible so what if
- 19:29the cord is not pulled but something is
- 19:32wrong in this case the worker committed
- 19:35a type two error so they failed to
- 19:39reject the null hypothesis they failed
- 19:43to reject their assumption that
- 19:45everything is wrong when something was
- 19:47actually
- 19:48wrong so type two error is wrongful
- 19:51support of the null hypothesis when it
- 19:54actually should be rejected
- 19:58now note in this case in this case a
- 20:02type two error can be
- 20:05catastrophic it may mean that hundreds
- 20:08or thousands of cars have that defect
- 20:12built into them and see this is why in
- 20:16the Toyota production system and other
- 20:17Lean Manufacturing Systems pulling that
- 20:20andon cord is encouraged if not actually
- 20:25required because the type one error it
- 20:28an annoyance is okay if they stop the
- 20:32line for a couple of minutes it's not
- 20:34that big a deal it's going to mean a few
- 20:36cars off the end of the line that didn't
- 20:38produce but think about the reverse if a
- 20:42worker sees something that they don't
- 20:44think is right but don't pull the cord
- 20:47and let that defect keep going and going
- 20:50and going and then all these cars at the
- 20:54end of the line have that defect built
- 20:56in that's why typ one error in this case
- 21:00is really okay but type two error is
- 21:04very very bad very bad and if it's a
- 21:08part on the car that's a safety issue it
- 21:10can be very very bad so again think of
- 21:14the difference between type one and type
- 21:17two error in these two cases type one
- 21:20was kind of a false alarm so the alarm
- 21:22was pulled when there really wasn't a
- 21:24fire the andon cord was pulled when
- 21:27there really wasn't a major problem
- 21:29that's annoying but it's not
- 21:31catastrophic in terms of the
- 21:32consequences but type two is in the Fire
- 21:36case if we don't pull the fire alarm and
- 21:38there is a fire our building may burn
- 21:42down and people may lose their lives in
- 21:44this case if we don't pull the andon
- 21:47cord and there is a problem that defect
- 21:50may get repeated hundreds or thousands
- 21:52of times and that's the real world
- 21:54consequence of type 2 error as related
- 21:57to type one
- 22:01error now we can set this up as a couple
- 22:03of hypotheses like we did the last time
- 22:05so our null hypothesis is that the
- 22:07problem is annoying but not serious
- 22:10everything is okay no major defect so
- 22:12the normal running of the production
- 22:14line our null hypothesis is that the
- 22:17problem is serious everything is not
- 22:19okay as usual there is a major defect so
- 22:22we can set up a table just like this so
- 22:24we have two conclusions we can make we
- 22:27can accept our n hypothesis or you can
- 22:29think of it as not rejecting I should
- 22:31have changed that to not rejecting our
- 22:33null hypothesis and that is no serious
- 22:36defect we could reach the conclusion of
- 22:39rejecting our null hypothesis that there
- 22:42is some serious defect going on so
- 22:44that's the conclusion we can make on the
- 22:46line in the moment now the actual
- 22:49condition maybe when the supervisor
- 22:51walks over could be that there is no
- 22:53serious defect or there is some serious
- 22:56defect now if we if we do not reject our
- 23:01null and there is no serious defect
- 23:04that's the correct conclusion and
- 23:07actually that's the way the production
- 23:08line works you know the vast majority of
- 23:10the time we assume everything is going
- 23:13okay and there are no serious defects
- 23:16that's a conclusion that is correct
- 23:18that's a match now if we reject the no
- 23:21hypothesis we think there is a serious
- 23:23defect and the reality is there is a
- 23:25serious defect that's also correct so
- 23:28our correct conclusion now let's look at
- 23:30the type one situation very quickly so
- 23:32let's say we reject the no hypothesis we
- 23:35reject our assumption that production is
- 23:37going okay without serious defect we're
- 23:40going to reject that because we think
- 23:41there's a problem now the actual
- 23:43condition is that there is no serious
- 23:46problem or defect so that disconnect
- 23:48between conclusion and reality is the
- 23:51type one error so the production line
- 23:53might stop for a few minutes or even
- 23:55maybe less than a minute to check it
- 23:58then after we see there's no serious
- 23:59problem or defect it just starts up
- 24:02again the type two error that's when we
- 24:05accept or fail to reject the null
- 24:08hypothesis so we think everything is
- 24:10going smoothly when in fact there is a
- 24:13serious defect going on and that is type
- 24:15two error and again that gets replicated
- 24:19over and over and over into each
- 24:21successive car so in general the real
- 24:23real consequences of a type two error
- 24:25are much greater in this case type 2
- 24:28error would mean hundreds or thousands
- 24:30of defective cars and maybe even unsafe
- 24:33cars as we proceed on Down the Line
- 24:37[Music]
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