Question

In a statistical analysis, what is the threshold for determining whether a result is significant, and what does the threshold mean

Answer 1

To determine the significance of the result there are two approaches in statistical analysis:

1) critical value method

2) the p-value method

1) critical value method: In this method, we calculate the test statistics and find critical values of the corresponding test.

• In left tailed test if the calculated value is less than the critical value then we conclude that result is significant.
• In the right-tailed test, if the calculated value is greater than the critical value then we conclude that result is significant.
• In the two-tailed test, if the absolute value of test statistic is greater than critical value then we conclude that result is significant

2)p-value method: Here we have a level of significance and based on the sample data we calculate the test statistic and corresponding p-value.

• If the p-value is less than the level of significance then we conclude that result is significant.

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