# Statistics, Significance

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#### Summary

**Statistics** is the study of the collection, organization, analysis, interpretation and presentation of data.Dodge, Y. (2006) *The Oxford Dictionary of Statistical Terms*, OUP. ISBN 0-19-920613-9 It deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments. When analyzing data, it is possible to use one of two statistics methodologies: descriptive statistics or inferential statistics.

#### Details

Statistics rarely give a simple Yes/No type answer to the question asked of them. Interpretation often comes down to the level of statistical significance applied to the numbers and often refers to the probability of a value accurately rejecting the null hypothesis (sometimes referred to as the p-value).

Referring to statistical significance does not necessarily mean that the overall result is significant in real world terms. For example, in a large study of a drug it may be shown that the drug has a statistically significant but very small beneficial effect, such that the drug is unlikely to help the patient noticeably.

Criticisms arise because the hypothesis testing approach forces one hypothesis (the null hypothesis) to be "favored," and can also seem to exaggerate the importance of minor differences in large studies. A difference that is highly statistically significant can still be of no practical significance, but it is possible to properly formulate tests in account for this. (See also criticism of hypothesis testing.)

One response involves going beyond reporting only the significance level to include the *p*-value when reporting whether a hypothesis is rejected or accepted. The *p*-value, however, does not indicate the size of the effect. A better and increasingly common approach is to report confidence intervals. Although these are produced from the same calculations as those of hypothesis tests or *p*-values, they describe both the size of the effect and the uncertainty surrounding it.

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#### Related Topics

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