Question

Define and explain the similarities & differences between statistical significance and PRE. Please provide examples.(Type answer). Please type out answer

Answer 1

Answers:

Difference:

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Practical significance is defined as the relationships between variables of the real-world applications. A statistical significance shows the probability of the relationship that exists between two or more variables. It takes into account variance and means.

Practical significance means that the particular application of the hypothesis test is of great importance to the real world. A. Statistical significance means that the sample statistic is not likely to come from the population whose parameter is stated in the null hypothesis.

In principle, a statistically significant result (usually a difference) is a result that's not attributed to chance. More technically, it means that if the Null Hypothesis is true (which means there really is no difference), there's a low probability of getting a result that large or larger.4

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Example of Statistical significance:

if you run an A/B testing experiment with a significance level of 95%, this means that if you determine a winner, you can be 95% confident that the observed results are real and not an error caused by randomness

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Example of Practical significance:

A trick question! Statistically, both sets of smiles are equally significant (2 out of 20). But their practical significance changes according to the context. To many people, 2 deaths out of 20 would be significantly more important than 2 unhappy people out of 20

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