A Frequent Misuse of Significance Tests

Mayer, Thomas

doi:10.2139/ssrn.282312

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A Frequent Misuse of Significance Tests

16 Pages Posted: 8 Sep 2001

See all articles by Thomas Mayer

Thomas Mayer

University of California, Davis - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: August 2001

Abstract

Economists sometimes interpret the failure of a significance test to disconfirm a hypothesis as evidence that this hypothesis is valid. Six examples of this are cited from recent journals. But this is a misinterpretation of what significance tests show. While in general it is correct that every failure to disconfirm a hypothesis adds to its credibility, the term "disconfirm" is defined differently for this purpose than it is in the context of significance tests.

Keywords: Significance Tests, T Values, T Coefficients, Confirmation

JEL Classification: C1, B4

Suggested Citation: Suggested Citation

Mayer, Thomas, A Frequent Misuse of Significance Tests (August 2001). Available at SSRN: https://ssrn.com/abstract=282312 or http://dx.doi.org/10.2139/ssrn.282312