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Increased Yield An agronomist has shown experimentally that a new irrigation/fertilization regimen produces an increase of 2 bushels per quadrat (significant at the \(1 \%\) level) when compared with the regimen currently in use. The cost of implementing and using the new regimen will not be a factor if the increase in yield exceeds 3 bushels per quadrat. Is statistical significance the same as practical importance in this situation? Explain.

Short Answer

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Question: Explain the difference between statistical significance and practical importance in the context of the agronomist's experiment. Answer: Statistical significance refers to the low probability that the observed difference in yield between the current and new regimen is due to random chance, while practical importance refers to whether the increase in yield justifies the costs of implementing the new regimen. In the agronomist's experiment, the new irrigation/fertilization regimen is statistically significant, as it increases the yield by 2 bushels per quadrat with a 1% error rate. However, it does not meet the practical importance threshold, because the increase in yield needs to exceed 3 bushels per quadrat to justify the costs of implementation.

Step by step solution

01

Understand Statistical Significance

In this case, the statistical significance at the 1% level means that there is a 99% chance that the new irrigation/fertilization regimen does indeed increase the yield when compared to the current regimen. It indicates that there is a low probability (1%) that the observed difference in yield is due to random chance and not due to the effects of the new regimen.
02

Understand Practical Importance

Practical importance depends on whether the increase in yield due to the new regimen is enough to justify the cost of implementing it. In this situation, practical importance implies an increase in yield of 3 bushels per quadrat or more. If the increase in yield does not exceed 3 bushels per quadrat, the cost of implementing the new regimen will not be justified, and it will not be considered practically important.
03

Comparing Statistical Significance and Practical Importance

The increase in yield from the new regimen is statistically significant, but it may not necessarily be practically important. Here, the new regimen increases yield by 2 bushels per quadrat, which is statistically significant at the 1% level. However, for practical importance, the increase in yield needs to exceed 3 bushels per quadrat. Since the observed increase is only 2 bushels per quadrat, the new regimen’s practical importance is not met.
04

Conclusion

In this situation, statistical significance and practical importance are not the same. The new irrigation/fertilization regimen has been proven statistically significant in increasing the yield by 2 bushels per quadrat. However, it does not meet the threshold for practical importance, as the increase in yield required to justify the cost of implementation is 3 bushels per quadrat.

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