Question

Answer each question using essay format (that is, use sentences and paragraphs, not point form). For each question, answers are limited to a maximum of 150-200 words

1. What is practical significance?

Answer 1

Solution:

In case of practical significance, we would also want to know the effect size, strength of any relationship through a correlation coefficient and confidence intervals.While statistical significance relates to whether an effect exists, practical significance refers to the magnitude of the effect. Statistical significance is concerned with whether a research result is due to chance or sampling variability; whereas practical significance is concerned with whether the result is convenient in the real world.

The effect size is only an estimate because it is based on a sample. Due to sampling error, there is a margin of error around the estimated effect. Practical significance relates to whether a result from a statistical hypothesis test which is convenient in real life. It is a way to address some of the limitations with traditional testing and answers the question.

According to my opinion, i really like confidence intervals the reason is that you can use them to determine both statistical significance (if they exclude zero) and practical significance. Confidence intervals obviously focus on the size of the effect and also the uncertainty around the estimate instead of just whether the effect exists.

There is an inverse relationship between the standard error (standard deviation of the sampling distribution) and the sample size. Also, very little differences will be statistically significant with a very huge sample size. Thus, when outcomes are statistically significant it is important to also examine practical significance. Practical significance is not personally influenced by sample size.