Question

Question Help Explain the difference between statistical significance and practical significance. Choose the correct answer below. A. Statistical significance means that the hypothesis test being performed is useful for building theoretical foundations for other statistical work. Practical significance means that the particular application of the hypothesis test is of great importance to the real world. B. Statistical significance refers to the type of hypothesis test needed to analyze a​ population, with some tests being more important than Z tests. Practical significance refers to how difficult a desired hypothesis test is to perform in an​ application, with some tests being easier to perform than others. C. Statistical significance refers to how an unusual event is unlikely to actually appear in a real world​ application, such as every entry in a sample of size 50 having the same value. Practical significance refers to how an unusual event is likely to actually appear in a real world​ application, such as a rejection of a null hypothesis using data that looks feasible. D. Statistical significance means that the sample statistic is not likely to come from the population whose parameter is stated in the null hypothesis. Practical significance refers to whether the difference between the sample statistic and the parameter stated in the null hypothesis is large enough to be considered important in an application.

Answer 1

Option D is the correct answer.

Explanation:

The possibility that a relationship between two or more variables is caused by something other than chance is known as statistical significance. Statistical hypothesis testing is used to ascertain whether the result of a data set is statistically significant. This test provides a P-value, which represents the probability that random chance could explain the result.

Generally, a P-value of 5% or lower is regarded to be statistically significant.

Statistical significance relates to whether an effect exists, whereas practical significance indicates the magnitude of the effect.

Thus, by the definitions of Statistical significance and practical significance provided, only option D is correct, the other options are wrong.

The correct option is D- “Statistical significance means that the sample statistic is not likely to come from the population whose parameter is stated in the null hypothesis. Practical significance refers to whether the difference between the sample statistic and the parameter stated in the null hypothesis is large enough to be considered important in an application”.