Question

State whether or not you agree with each of the following statements and provide a short summary of the reasons for your answers.

1. If the P-value is larger than 0.05, the null hypothesis is true.
2. Practical significance is not the same as statistical significance.
3. We can perform a statistical analysis using any set of data.
4. If you find an interesting pattern in a set of data, it is appropriate to then use a significance test to determine its significance.
5. It’s always better to use a significance level of α = 0.05 than to use α = 0.01 because it is easier to find statistical significance.

Answer 1

Solution: Let, b) Failing to reject Ho doesn't mean that null hypothers рше It is true. :) The difference that is statistically significant migh not be practically important. (This doesn't mean th these are opposites's a difference could be both statistically and practically significant The Statement might be technically true, but for the analysis to be meaningful, the data must satisfy the assumptions and conditions involved in the analysis. d) the given statement "If you find an interesting pattern in a set of data , it is appropriate to then usea Significance test to determine its significance " is not true In such cases the data may be collected again to test the Significance e) 41's always better to use a significance level of =005 escorrect. This is because that it Supports the null hypothesis with 95% confidence.