What are examples of practical significance?

Answer 1

Practical significance refers to the real-world relevance or importance of a finding, beyond mere statistical significance. For example, a new medication may show a statistically significant reduction in symptoms, but if the actual improvement is minimal and doesn't enhance quality of life, it may lack practical significance. Similarly, a study might find that a training program improves employee productivity by 1%, which, while statistically significant, may not be meaningful enough to justify its cost. Thus, practical significance helps determine if results can lead to actionable decisions or improvements in practice.