Statistical significance is a term used by researchers to state that it is unlikely their observations could have occurred under the null hypothesis of a statistical test. Significance is usually denoted by a p -value , or probability value. Statistical significance is arbitrary — it depends on the threshold, or alpha value, chosen by the researcher. When the p -value falls below the chosen alpha value, then we say the result of the test is statistically significant. The p -value only tells you how likely the data you have observed is to have occurred under the null hypothesis.
Have a language expert improve your writing. Check your paper for plagiarism in 10 minutes. Do the check. Generate your APA citations for free! APA Citation Generator. Home Knowledge Base Statistics The p-value explained. Receive feedback on language, structure and formatting Professional editors proofread and edit your paper by focusing on: Academic style Vague sentences Grammar Style consistency See an example.
What is a p-value? How do you calculate a p-value? What is statistical significance? Does a p-value tell you whether your alternative hypothesis is true? Whatever information that is against the stated null hypothesis is captured in the alternative hypothesis H 1.
For the above examples, the alternative hypothesis would be:. In other words, the alternative hypothesis is a direct contradiction of the null hypothesis. As an example related to financial markets, assume Alice sees that her investment strategy produces higher average returns than simply buying and holding a stock.
The null hypothesis states that there is no difference between the two average returns, and Alice is inclined to believe this until she can conclude contradictory results. Refuting the null hypothesis would require showing statistical significance, which can be found using a variety of tests. The alternative hypothesis would state that the investment strategy has a higher average return than a traditional buy-and-hold strategy. One tool that can be used to determine the statistical significance of the results is the p-value.
A p-value that is less than or equal to 0. If Alice conducts one of these tests, such as a test using the normal model, resulting in a significant difference between her returns and the buy-and-hold returns the p-value is less than or equal to 0. Corporate Finance Institute. Trading Basic Education.
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For example, in cross-over design and parallel design, we may have the same effect but a different p-value, or the same effect will have different p-values if the precision of the estimates differs. Other incorrect interpretations of the p-value are as follow: P-value is a statistical index and has its own strengths and weaknesses, which should be considered to avoid its misuse and misinterpretation A good report contains describing the data by suitable numerical and graphical summaries of data, dominance on the setting of the study, and logical and clinical interpretation of quantitative indexes.
As a whole, summarizing statistical comparisons to statistical significance or non-significance is one of the highly popular statistical misinterpretations of p-values and hypothesis testing. The p-value like other indexes should be used and interpreted appropriately and should not be a scientific reason just by itself.
P-value: What is and what is not. Med J Islam Repub Iran. National Center for Biotechnology Information , U. Published online Sep Find articles by Kiarash Tanha. Find articles by Neda Mohammadi.
Find articles by Leila Janani. Author information Article notes Copyright and License information Disclaimer. Corresponding author: Dr Leila Janani, moc. Received Mar 6. This is an open-access article distributed under the terms of the Creative Commons Attribution NonCommercial 3. This article has been cited by other articles in PMC. Abstract The misinterpretation and misuse of p-value have been increasing for decades.
Do the check. Generate your APA citations for free! APA Citation Generator. Home Knowledge Base Statistics Test statistics explained. What can proofreading do for your paper? What is a test statistic? How do you calculate a test statistic? How do I know which test statistic to use? The test statistic you use will be determined by the statistical test.
What factors affect the test statistic? What is statistical significance? Is this article helpful? Rebecca Bevans Rebecca is working on her PhD in soil ecology and spends her free time writing. She's very happy to be able to nerd out about statistics with all of you. Other students also liked. The p-value explained The p-value shows the likelihood of your data occurring under the null hypothesis.
P-values help determine statistical significance. Statistical tests: which one should you use?
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