statistical_significance

# statistical_significance - Statistical Significance A...

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Statistical Significance A county's observed rate should be thought of as an estimate of the true underlying rate. The number of events (birth, death, hospitalization, etc.) in a county varies by chance, depending on the number of county residents and the probability of the event. Because of this, rates based on small numbers are unstable. Therefore, tests for statistical significance were performed to determine the probability that the differences between county rates and the corresponding state/regional rates were the result of chance. If "YES" was present in the "significantly different” (Sig.Dif.) column, there is a 95 percent probability that the county rate was either higher or lower than the state/regional rate. Conversely, there is only a 5 percent probability that the difference between the county's rate and the state/regional rate is due to chance or random error. If "NO" was present, it could not be stated that the difference between the county rate and state/regional rate is not not due to random error; the difference is not statistically significant. Tests for Significance Utilized in CHAI's The test for significance at the 95% confidence level differs depending on the number of events (birth, death, hospitalization, etc.). When at least one of the rates is based on fewer than

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## This note was uploaded on 09/04/2011 for the course ECON 140b taught by Professor Staff during the Winter '08 term at UCSB.

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statistical_significance - Statistical Significance A...

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