Give one example of when practical significance would outweigh statistical significance? Explain your rationale
It is statistically significant that taller men make better leaders/executives, but the differences are only in fractions of an inch. Does that help?
One example of when practical significance would outweigh statistical significance is in medical research. Let's consider a hypothetical study on a new drug to treat a particular disease. Suppose the study involves two groups, a control group receiving a placebo and an experimental group receiving the new drug.
Statistical significance is determined by analyzing the data collected from both groups using statistical tests. It helps determine if the observed difference between the groups is unlikely to have occurred by chance. Typically, a p-value is calculated, and if it falls below a predetermined threshold (e.g., p < 0.05), the results are considered statistically significant.
However, practical significance refers to the real-world impact or importance of the findings. In the medical field, the practical significance of a treatment surpasses statistical significance when the observed effect of the new drug is clinically meaningful, even if the statistical tests do not indicate statistical significance.
For instance, imagine that in the study, the new drug did not achieve statistical significance in terms of curing the disease compared to the control group, but it significantly improved the quality of life for patients, reduced symptoms, or had fewer side effects. In such a case, the practical significance of the new drug's benefits would outweigh the lack of statistical significance because it offers tangible benefits for patients.
Thus, in this example, practical significance is more essential than statistical significance because the primary goal of medical research is to improve patient outcomes rather than simply proving statistical significance.