If the amount of water flowing out of the hole is the same as the amount entering from the faucet, the system is in balance. In this situation, the sensor is your eyesight. The feedback system is your hand on the faucet, which can turn the faucet to increase or decrease the flow based on what your eyes are telling you. Feedback corrects the Input. If you don't correct it you will fall.
Homeostasis is the process of correcting imbalances.
Figure Two takes place about three seconds after Figure One. Another way to think of homeostasis is that living systems try to maintain a constant internal environment. The adjustments that organisms make to keep their interior environments stable are responses to changes in the environment outside their bodies. The most familiar regulation our own bodies do is temperature regulation. We sweat and we breathe faster, two regulatory processes that lower the body temperature.