Data Analysis Iteration

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This lecture's gonna provide an overview
of the cycle of data analysis.

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Data analysis is a complex process
that can involve many pieces and

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many different tools.

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But fundamentally,
there are only three parts to it.

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The first part is setting expectations.

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The second part involves
collecting information and

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comparing your expectations to data, and

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the last part Involves reacting to data,
and revising your expectations.

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So that's basically it.

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Those are the three parts of data analysis
that you often will cycle through,

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many times, in the course of
analyzing any given data set.

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So I'm gonna break down each one of these

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pieces to give you a little bit of
a description of what they are, and I'll

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give you a little example of kinda how
they might be applied in the real world.

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So steady expectations involve
deliberately thinking about

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what you're gonna do before you do it.

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Now, the idea in any part of data analysis
is that everything you do is gonna

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have some sort of consequence,
whether it's collecting data, whether

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it's fitting a model, whether it's asking
a question or making some sort of plot.

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Everything you do there will be some sort
of action, and the point is you wanna

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think about what that consequence
is gonna be, before you do it.

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And that way you set the expectations for
yourself, and

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you can determine whether the reality
kind of meets that expectation.

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So that's the first part
of the data analysis cycle.

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Once you've set your expectations the next
thing you wanna do is collect some data or

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collect some information that will
allow you to compare those expectations

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to reality.

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And so,
collecting that information is key,

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because it will tell you whether or
not your expectations were right.

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Whether they were wrong.

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Whether they were too high, too low,

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whatever it is depending on
the problem you're working on.

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And then, once you've collected that
information, and compared it to your

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expectations you can react to it, and
maybe change your behavior in some way.

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So the last part of the data analysis
cycle is to think about what have

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we learned from the data, from our
expectations, and their comparison.

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What would we do differently next time.

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Did we match our expectations,
did they not match, why or why not.

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So that's the third part.

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And then, once you've completed the third
part and you've revised your expectations,

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you may go back, with these revised
expectations and collect more data and

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try to match them again, and
then this iteration continues, often for

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many different times in
any given data analysis.

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So I just wanna give you a quick
example of how you can use these

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three components in a kind of generic or
kind of commonplace setting.

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So the basic example I'm gonna present
here is going out to dinner with

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your friends.

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So suppose you're going out to dinner and

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the restaurant you're going
to is a cash only place.

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So the question you have to ask yourself
is how much money should you bring.

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And the basic activity you're gonna
engage in is eating a meal, and you're

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gonna check for the bill, and you're gonna
have to pay, money to pay for the meal.

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But before you do that, you gotta figure
out how much money to bring, and so

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you have to figure out well, what's your
expectation for the cost of this meal.

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Maybe you've dined at this
restaurant all the time, so

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you know exactly how much it's gonna cost.

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Maybe you know, well in this city, the
typical meal costs this many dollars, and

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so I'll just bring that much money,
cuz this is an average kind of restaurant.

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Maybe you know,

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well the most expensive restaurant in
this city costs this many dollars.

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So I know it's not gonna
cost this more than that, so

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I'll just bring that to kind of serve as
an upper bound on how much money I might

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end up spending at this restaurant.

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You might ask your friends,
if they've been their before,

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how much does this place cost.

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Or you might Google the restaurant and

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maybe look up the menu to see what
the meal typically costs there.

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At any rate, before you've gone to the
restaurant and eat the meal, you can use

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any sort of opreory information
to set up your expectations for

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what the cost is ultimately gonna be.

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Before you observe the real thing.

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So once you've set your expectations, you
can figure out how much money to bring.

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The actual collecting of the data
involves going to the restaurant and

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getting the check.

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So once you've gotten the check,

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you observed the reality
of what the meal costs.

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And there's two possibilities.

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One is that,
that cost meets your expectation.

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So suppose you thought
it was gonna be $30, and

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it ended up being $30, then that's great.

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You know exactly,

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you brought the right amount of money,
and then you can pay for the meal.

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The other possibility is that
the expectations don't match of what

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the reality is.

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So thought it was $30 and
it ended up being $40.

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And so, you have to ask yourself
then why do you have that mismatch.

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Why is it that you thought it was $30 and
the meal turned out to be $40.

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So there's two possibilities.

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One is that your expectations were wrong.

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So you thought that the restaurant
was cheaper than it actually was.

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Another possibility is that there's
something wrong with the data, for

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example.

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It's possible that they added up the check
wrong, maybe they charged you for

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something for
that you didn't actually eat.

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So you can look at the check to see if
there is a problem with the data that you

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collected.

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One thing to note about
this example is that it was

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easy to know whether your expectations
were matched with the data or not.

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So for example, if your expectation was
the meal would cost $30, and then it

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actually cost $40, you know immediately
that your expectations were not right.

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The meal was $10 more than you
actually thought it was gonna be.

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And so,
you can make that conclusion very quickly.

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Another possibility, for example,

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is that you could've said well
the meal being between 0 and $1,000.

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And so, when the data actually comes
in and you see the check is $40 then it

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actually matches your expectation which
is that it's between 0 and $1,000.

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But because your original
expectation was so diffused, and

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so kind of general,
you don't really learn that much from

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collecting the data given your
very diffused expectation.

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So this brings us to an important point
which is that it's important to have

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a very sharp expectation or

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a sharp hypothesis about what
you're trying to investigate.

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When I said that I expected
the meal to be $30,

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it was very easy to know when
my expectations were not met.

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But if my expectation was very diffused
and not sharp at all, like between 0 and

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1,000, then, collecting the data
doesn't really help you.

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Or it doesn't help you learn the process
you're trying to study or in this case,

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the cost of the meal at this place.

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So ultimately,
what we're leaning toward with

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setting your expectations in collecting
data is called a change in behavior or

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an understanding of the mechanism
you're trying to study.

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What did we learn, and
what would you do differently next time?

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So in this scenario where you
thought it was gonna be $30 and

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it ended up being $40, well then the next
time you might bring an extra $10.

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If you originally thought it
was gonna be between 0 and

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$1,000 then the cost ended up being $40,
it's not clear that you would change

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anything about your behaviour
based on this data.

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And so, if there is no change
in what you might think or

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what you might do based on
the collection of the data and

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matching it with your expectations,
then that's often a sign that

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either the evidence from your experiment
is not very strong or the data analysis

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was not able to generate enough evidence,
or there may be some other problem.

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With your study or
your data analysis process.

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So setting the right expectations and
making them as sharp as possible

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is a really key element to this
whole data analysis cycle.

Google Classroom (GC) - Asas

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Stream

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