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Hrm 531 Week 4 Paper

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The LV team is eager to learn what statistical significance is and why it’s an important construct in the study and use of inferential statistics.
Good Morning LV Team,
The last few weeks we covered descriptive statistic: the central tendency, variability, correlation and Z-score. Today’s session is a little bit different, we will be talking about statistical significance. Statistical significance is the level of risk one is willing to take to reject or accept a null hypothesis while it is true and it separate random error from systematic error. When doing a study or research, the statistical significance shows that the difference obtained were not caused by chance. Inferential statistics, the T-test, partition noise from bias by studying a random sample than the population in which we are interested and from the results we infer. The advantage of using sample than a population, it is convenient, saves time, energy and money because n is smaller than population and above all it helps to control systematic and random errors. When we are making a conclusion, we should have a certain confidence or probability of being right and that is called the alpha level; which the risk you are willing to …show more content…

There is a significance, but is it practical or meaningful? It depends on the context and circumstance, therefore, 0.01 is not practical compared to the benefit I gain from buying the California Olive Ranch brand which is lower in price with better quality (previous study). However, if studies had shown that the quality was inferior, then 0.01 would be practical significance. Knowing whether the probability is significance or practical helps us in our decision. If I want to increase the cost of X by 1cent and by competitors have a lower price with same quality, then it is not practical to increase the cost by a penny and lose my customer. Do you have any question before we end our

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