08. Video: Statistical vs. Practical Significance

Here, you learned about practical and statistical significance.

Using confidence intervals and hypothesis testing, you are able to provide statistical significance in making decisions.

However, it is also important to take into consideration practical significance in making decisions. Practical significance takes into consideration other factors of your situation that might not be considered directly in the results of your hypothesis test or confidence interval. Constraints like space, time, or money are important in business decisions. However, they might not be accounted for directly in a statistical test.