Problem 1BSC

Statistical Significance versus Practical Significance What is the difference between statistical significance and practical significance? Can a statistical study have statistical significance, but not practical significance?

Answer :

Step 1 of 1 :

Statistical significance : is the likelihood that a relationship between two or more variables is caused by something other than random chance. Statistical hypothesis testing is used to determine whether the result of a data set is statistically significant.

Practical significance : the results of a quantitative research study

Difference between statistical significance and practical significance

> Statistical significance depends upon the sample size, Practical significance depends upon external factors like time, cost objective, etc.

> Statistical significance refers to the unlikelihood that the result is obtained by chance, i.e, probability of relationships between two variables exists.

Practical significance refers to the relationship between the variables and real world situation.

> Statistical significance does not guarantee practical significance, but to be a practically significant, a data must be statistically significant.

A statistical study have statistical significance, but not practical significance