Statistical vs Practical Significance: Why a Small p-Value Is Not Enough

A result can be statistically significant and still too small to matter, or large and not significant.

Statistical significance says a difference is unlikely to be chance alone. Practical significance asks whether the difference is big enough to matter for the people, the budget or the decision. The first depends heavily on sample size, the second on judgment, so a report needs both. When you judge how much weight a published claim deserves, a meta-evaluation looks at the quality of the evaluation itself.

At a Glance

Statistical significancePractical significance
QuestionCould this difference be chance?Is this difference big enough to matter?
Evidencep-value, confidence intervalEffect size, cost, benefit, what people would notice
Depends on sample size?Strongly. Large samples find tiny differencesNo. A difference is the same size in any sample
Who decidesThe analysis, by convention (often 0.05)The program team, funder and affected people, agreed in advance
Can mislead whenSample is very large or very smallThe threshold is set after seeing the results
Report it asp-value with the intervalEffect in real units next to the agreed meaningful change

The statistical significance entry explains the test itself. This page shows how to place the result next to a judgment about size.

Frequently Asked Questions

What is the difference between statistical and practical significance?

Statistical significance says the result would be unlikely if there were no real difference. Practical significance asks whether the difference is big enough to matter for the people, the budget or the decision. A very large sample can make a tiny difference statistically significant, and a small sample can make an important difference look insignificant.

Is a p-value below 0.05 enough to report a program as effective?

No. The p-value does not give the size of the effect, and 0.05 is a convention, not a measure of importance. Report the estimated effect, its confidence interval and how it compares with a change that would matter in practice.

How do I decide what counts as a meaningful difference?

Agree it before the analysis, with the funder and the program team, from costs, benefits, earlier studies or what people in the setting would notice. Then see whether the whole confidence interval is above, below or around that line.