Statistical Significance in Decision-making

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Ignatius D
Manager, India
🔥NEW Companies are increasingly using business analytics and are increasingly relying on data to make operational, tactical and even strategic business decisions. Obviously, when making decisions, managers should not rely on calculations and models they don't understand. That's why understanding statistical significance is becoming more important for managers. First of all, you should realize that in statistics, "significant" does NOT mean something is big or important! Rather it means that the result we see in some sample also exists in the (total) population. What is statistical significance? Statistical significance is the likelihood that a relationship between two or more variables we find in our results is NOT caused by random chance. If you draw conclusions out of a lot of data, you have to use a sample. A sample is a set of individuals / objects collected or selected from a bigger statistical population by some defined procedure. But in any experiment or observation that involve (...) Read more? Sign up for free

  Bob R
Manager, United States
 

Common Mistake in not Using Statistical Significance: Type 1 Errors

Good article and much needed in business decision (...)

  Anonymous
 

What is a Type 1 Error?

@Bob R: Agreed. A Type 1 error (or type I error) i (...)

  Gandhi Heryanto
Management Consultant, Indonesia
 

Practical versus Statistical Significance in Decision Making

In decision making we must also look at the practi (...)

 

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