Chapter 9, Problem 9.62RE

To determine

To explain the result can be statistically significant but have little practical importance.

Explanation of Solution

First need to know about statistical significance and practical significance.

Statistical significance: This shows the relationship between two or more variables is caused by chance.

Practical significance: This shows the relationship between variables of the real applications. That means if the difference is large then practically significant.

Therefore, if difference of 0.1% can be statistically significant which can be occurred by chance, while the difference of 0.1% is not practically important as it is a small difference.