Session 3: Quantitative Methods: Application Reading 11: Hypothesis Testing
LOS d: Distinguish between a statistical result and an economically meaningful result.
Of the following explanations, which is least likely to be a valid explanation for divergence between statistical significance and economic significance?
While data errors would certainly come to bear on the analysis, in their presence we would not be able to assert either statistical or economic significance. In other words, data errors are not a valid explanation. The others are all mitigating factors that can cause statistically significant results to be less than economically significant. |