An employer compared the average salaries of their employees over the past two years. they found that the average salary had increased by $3,000 from $40,000 to $43,000, which corresponded to a p-value of 0.21. what should we conclude about their findings?

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02-04-2018
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An employer compared the average salaries of their employees over the past two years. they found that the average salary had increased by $3,000 from $40,000 to $43,000, which corresponded to a p-value of 0.21. what should we conclude about their findings?

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ahmedishaal ahmedishaal · Answer 1 · 2018-04-11T11:55:23+02:00

The answer is "the results were practically significant but not statistically significant".

Statistical significance is computed by utilizing a p-value, which reveals to you the likelihood of your outcome being watched, given that a specific statement is true. If this p-value is not as much as the significance level set (typically 0.05), the experimenter can expect that the invalid speculation is false and acknowledge the alternative hypothesis.