Question

An employer compared the average salaries of their employees over the past two years. they found that the average salary had increased by $3,000 from $40,000 to $43,000, which corresponded to a p-value of 0.21. what should we conclude about their findings?

Answer 1

The answer is "the results were practically significant but not statistically significant".

Statistical significance is computed by utilizing a p-value, which reveals to you the likelihood of your outcome being watched, given that a specific statement is true. If this p-value is not as much as the significance level set (typically 0.05), the experimenter can expect that the invalid speculation is false and acknowledge the alternative hypothesis.