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# Differences between Statistical and Practical Significance

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Hypothesis testing determines if results are statistically significant. However, marketing managers want to know if research results are practically significant. What is the difference between these two concepts? How does a researcher explain the difference to a manager? Can the size of a sample affect the difference between statistical and practical significance? If so, explain how.

##### Solution Summary

Solution explains the differences between statistical significance and practical significance and how to explain those differences to a manager.

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What you're talking about here is the difference between effect size (practical significance) and statistical significance. Imagine that you find that a marketing program you've implemented increases sales significantly. What this means is that the signal (difference between sales while using the marketing program and sales not using it) is larger than the noise (differences in sales that occur by chance, regardless of the program being used). However, you do not know if that difference equates to ...

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