What does it mean for a result to be statistically significant?
Correct Answer
D) The result is unlikely to have arisen by chance
Why this is correct: Statistical significance is a measure of probability. A statistically significant result is one where the observed pattern (e.g., a difference or trend) is unlikely to have occurred due to random chance alone, based on a chosen significance level (like p < 0.05). Why the other choices are wrong: 'The result is large enough to matter in practice' describes practical significance, not statistical significance. 'The result has been verified by a second party' describes peer review, not a statistical test. 'The result applies to every property in the market' is wrong; significance relates to the likelihood of a pattern in the sample, not universal application. Exam tip: Distinguish between statistical significance (is it real?) and practical significance (is it big enough to care about?).
Why This Is the Correct Answer
Why this is correct: Statistical significance is a measure of probability. A statistically significant result is one where the observed pattern (e.g., a difference or trend) is unlikely to have occurred due to random chance alone, based on a chosen significance level (like p < 0.05). Why the other choices are wrong: 'The result is large enough to matter in practice' describes practical significance, not statistical significance. 'The result has been verified by a second party' describes peer review, not a statistical test. 'The result applies to every property in the market' is wrong; significance relates to the likelihood of a pattern in the sample, not universal application. Exam tip: Distinguish between statistical significance (is it real?) and practical significance (is it big enough to care about?).
More appraisal-statistical-methods Questions
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