What is practical significance?

In: Statistics [Edit categories]

Answers.com > Wiki Answers > Categories > Jobs & Education > Education > School Subjects > Math and Arithmetic > Statistics > What is practical significance?
Answer:

Answer

There is statistical significance, an arbitrary limit whereby an observed difference could reasonably be assumed to be due to some factor other than pure chance. Then there is practical significance, an arbitrary limit whereby an observed difference is of some practical use in the real world.

Let's say you add Ingredient X to your car's oil that is supposed to improve fuel efficiency. You conduct a careful controlled experiment, measuring fuel efficiency before and after introducing the additive. You find that the difference before and after is statistically significantly better, and conclude that the additive does indeed improve fuel efficiency. However, Ingredient X costs $1000 a bottle - effectively negating any fuel efficiency savings. You don't really drive your car that much so conclude that the difference is not practically significant.

First answer by Randovaro. Last edit by Randovaro. Contributor trust: 260 [recommend contributorrecommended]. Question popularity: 45 [recommend question].

Can you answer these Statistics questions?

Relevant answers:

Related Ads:

Related ads:

Sign in using:

Answers.com members:




Create account
Join using:

Join Answers.com:





Already a member?
Sign in
Why join?
Joining is free and easy. You can still be anonymous; just choose any username and password.

  • Get notified about updated answers
  • Follow your favorite categories
  • Get credit for your contributions
  • Customize your profile
  • Answer questions more easily
Not convinced? Read more.
Lost your password?

You may already have an Answers.com account.
Click here to connect your accounts.  
If you don't want to connect accounts, you can start a new one from scratch.
Minor details...


  

Connect your accounts...




Lost password?
Why do we need your email address?
We will use your email address to send you updates (if you request them) about questions you ask, answer or track, and to help you retrieve your password if you forget it.

Your email address will not be used for any other purpose without your permission.
Already have an Answers.com account? Connect your accounts!
By doing so, you include all of your history (contributions, messages, profile) from your Answers.com account in your Facebook account.

If you don't connect accounts, your new account will be starting from scratch.

Home

Welcome
Help center
Browse categories
Random question
Community forum