From the course: The Data Science of Experimental Design

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False positives and negatives

False positives and negatives

From the course: The Data Science of Experimental Design

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False positives and negatives

- [Instructor] In this video, I'm going to continue with the GoPro classic camera example to illustrate how your selection of a denominator can induce false positives and negatives. Let's think about the numerator and denominator in our conversion rate. We trust the way we are counting the numerators. Maybe there's a little misclassification, like maybe a sale gets returned but accidentally is counted as a sale, but it's not going to be big, where you can end up inducing false positives and negatives is with your selection of the denominator. Actually, you can screw up so badly that you can select a denominator that causes false negatives or positives in both the numerator and the denominator. Remember the rule that everyone in the numerator has to also be in the denominator. If you mess that up, then you end up with misclassifying the numerator. So what do you do? The solution is to have a few of them. That way you…

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