Reading 11: Hypothesis Testing LOS d习题精选 economic, following, div, between

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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?

A) Transactions costs.

B) Data errors.

C) Adjustment for risk.

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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.

 

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c

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Which of the following statements about statistical results is most accurate?

A) If a result is statistically significant and economically meaningful, the relationship will continue into the future.

B) A result may be statistically significant, but may not be economically meaningful.

C) If a result is statistically significant, it must also be economically meaningful.

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It is possible for an investigation to determine that something is both statistically and economically significant. However, statistical significance does not ensure economic significance. Even if a result is both statistically significant and economically meaningful, the analyst needs to examine the reasons why the economic relationship exists to discern whether it is likely to be sustained in the future.