If a finding is statistically significant, why is it also necessary to consider practical significance?© BrainMass Inc. brainmass.com March 4, 2021, 9:26 pm ad1c9bdddf
When we make a statistical decision, it is based only on statistical significance. For example, suppose a pharmaceutical company is considering the replacement of their current cholesterol lowering drug with a new one. The statisticians collect and analyze data and report the following back to management. The statistical conclusion is, "With 95% confidence (the .05 level of statistical significance), we can conclude that the average cholesterol lowering capacity ...
This solution illustrates the difference between statistical significance and practical significance.