Unformatted text preview: statistical significance not necessarily of practical important difference to a business decision? Provide an example of this. Statistical significance refers to any project or activity having a 90% significance or chance of success. Practical significance refers to the actual analysis based on empirical reasoning and logic for taking a decision. Statistical significance is not necessarily of practical importance to a business decision as many times decisions have to be taken without availability of statistical information and have to be based on experience. An example of this is when a marketer decides to not introduce a product in the market in spite of statistical information indicating that there is sufficient demand as he can see that competition is very high, thus leading to dropping he idea sue to prospective risk. Reference: Lind, Marchal, Wathen. Basic Statistics for Business & Economics, 7 th Ed. McGraw-Hill Irwin. 2011: Pg 299....
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- Fall '10
- Statistics, Statistical significance, Type I and type II errors, Business & Economics, Wathen