Comparing Statistical Significance to Practical Significance

If a finding is statistically significant, why is it also necessary to consider practical significance?

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/statistics/hypothesis-testing/comparing-statistical-significance-to-practical-significance-7evo

Solution Preview

...f the new drug is greater than the cholesterol lowering capacity of the old one". The test, based on statistical significance alone, has shown the new drug to be better than the old, so if we base a decision on this test alone, we will probably switch to the new drug.

Management will almost certainly not introduce the drug based on statistical significance alone. Suppose management asks the statisticians to estimate the difference in cholesterol lowering ...