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Discuss the difference between statistical significance and practical significance.

Short Answer

Expert verified

The differences between both statistical significance and practical significance are found through the specified significance level.

Step by step solution

01

Step 1. Given Information

Two terms statistical significance and practical significance are given.

02

Step 2. Stating the difference

Result of a hypothetical test is significant or statistical significant if the null hypothesis is rejected at any specified significance level.
Statistical significance means that on a specified significant level, the data provides suffice information to conclude that the actual truth is different from the truth stated in the null hypothesis.

03

Step 3. Stating the difference

It may happen that the result of a hypothesis test is significant for a significance level but is insignificant for another significance level (a result of a hypothesis test will be insignificant if we specify the significance level smaller than the P-value of that test).

So, it is clear that statistical significance of any truth(i.e. of same hypothesis) may be different from practical significance of that truth.

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