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Statistical vs Practical Significance

MediumStatistics & Probability00:00
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Problem

Scenario

You're reviewing results from a product experiment and the team is excited because the effect is statistically significant. You need to explain whether that automatically means the change matters for the product.

Question

What’s the difference between statistical significance and practical significance in a product experiment?

What this tests

  • How to distinguish evidence from effect size
  • How p-values and confidence intervals relate to product decisions
  • How to translate experiment lift into business impact