What Is the Difference Between Statistical Significance and Practical Significance

question 22

Essay

What is the difference between statistical significance and practical significance? Give a concrete example to illustrate your answer.

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Definitions:

Point-Of-Sale Disclosure

Information provided to consumers at the time of sale, detailing important facts and conditions about the product or service being purchased.

Investment Products

Various types of assets and securities (e.g., stocks, bonds, mutual funds) that individuals can invest in hoping to earn returns.

PCAOB

Public Company Accounting Oversight Board, a nonprofit corporation established by Congress to oversee the audits of public companies to protect investors.

FINRA

The Financial Industry Regulatory Authority, a non-governmental organization that regulates member brokerage firms and exchange markets, ensuring fairness and honesty in the financial industry.