Distinguish Between Statistical Significance and Practical Significance

question 41

Multiple Choice

Distinguish between Statistical Significance and Practical Significance
-True or False: Results that are practically significant will always be statistically significant.

• A) False
• B) True

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Definitions:

Nominal Income

The amount of money received in a specified period before adjusting for inflation.

Revealed Preference

An economic concept suggesting that the preferences of consumers can be observed by their purchasing habits and choices.

Inflation Level

Inflation level measures the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Base Year

A specific year chosen as a point of reference or benchmark for financial or economic data comparison over time.