Significance testing
 
  • AKA hypothesis testing

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  • can we reject sampling error as an explanation for the result?

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  • may only be applied to data based on probability samples

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  • steps

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    1) define null and alternate hypotheses
     


    2) summarize data and generate the test statistic
     


    3) determine probability of observing sample data if null hypothesis true in population
     


    4) make a decision
     


     
  • relationship to confidence intervals

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  • type I error - rejecting null hypothesis when it is true

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  • type II error - rejecting alternative hypothesis when it is true

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    Factors influencing statistical significance
     

  • p-value a function of: sample size x magnitude of difference/relationship

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    When are significance tests useful and legitimate?
     

  • when a single study must guide immediate action (e.g., court decision, clinical trial of a drug/procedure for serious disease, predicting winner of election on election night, etc.)

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    Major problems with significance testing

    1) confuses "statistical significance" with practical significance

    2) boils down quantification of data & analysis to yes/no decision
     


    3) virtually all relationships/ differences are nonzero
     


    4) one study does not resolve a question of any scientific or practical importance
     

    bottom line: p-values and significance testing irrelevant in most cases

    appropriate action: focus on descriptive statistics, CIs, and pattern of results across studies