What is the significance in statistics & why is it used?

What is the significance in statistics & why is it used?

Do you know that almost 50.5 zettabytes (with 21 zeros) of data was created in 2020!! Many data scientists claim that it will be more and more in the upcoming years. So, how do you get the relevant details from such huge available data? This will be done using statistics where significance in statistics can be used.


The digital economy is based on large data. That is why analysis plays an important role. Data scientists use different methods and tools to carry out relevant and most accurate information from the collected data.


Now, the question is what is significance in statistics, and why is it used? Below, we have answered such questions. Scroll down the page to get the appropriate details.


What is the significance in statistics?


It is the likelihood that represents the relationships among two or more variables of the particular analysis. The results are not coincidentally found but they actually occurred because of another factor.


In other words, we can say that significance in statistics is the method to prove that the particular statistics are real mathematically.


Even in more simple words, we can say that if the findings are significant, these are actually real mathematically. Here you are just unlucky (or lucky) that you have selected the wrong (or correct) sample respectively.


Why is the significance in statistics important for business growth?


Data is one of the essential assets for a company and a business. Data helps in understanding the market demand, trends, and many more. That is why almost all companies use statistical analysis to get the desired information from the data. 


Now, here significance in statistics is useful to know how strong the surveys’ results are. Apart from this, it is useful for understanding the experiment and poll data to make better decisions. These significant values are important as they provide confidence in the analysis and their results insights. 


There is no benefit of taking decisions over the data insights that are incorrect or misleading. This will always result in misleading the business and company owners from the actual impacts and demands. That is why they must focus on the relevancy and accuracy of the data that can be achieved using the significance in statistics.


Is there any way to determine statistical significance?


Yes. In the three different ways, you can determine the significance in statistics. We have detailed these ways for your better understanding.


  • When you experiment and the p-value is much smaller than the significance level (alpha), then the test will be significant statistically.


  • In the case of confidence intervals with a null hypothesis value, there are higher chances that the test is significant statistically.


  • Whenever the p-value is much smaller than the alpha (significant level), the confidence interval does not have any null hypothesis value, then the value will be significant statistically.


Steps: How to calculate the significance in statistics?


You can practice the following steps to determine the desired result of the statistical significance. And these steps are:


  • Set the value of the null hypothesis.
  • Set another or alternative hypothesis value.
  • Calculate the significance level (alpha).
  • Perform one or two-tail tests.
  • Get the desired sample set.
  • Determine the value of standard deviation (SD).
  • Find the t-test score.
  • Get the desired degree of freedom.
  • Finally, use the t-table to get the value of statistical significance.


Where to use the statistical significance?


There are several places where you will find the application of significance in statistics. But here, we have provided some of the major places where you can use statistical significance.


  • Email response rate/ Notification and conversion rate
  • Users reaction to the product pricing
  • Users reaction to newly launched features
  • Landing page conversions
  • Users reaction to newly launched products
  • Users reactions to the new designs


You can see that the user reaction to a certain product or feature is important for a company or business. It helps in improving the effectiveness of the product or feature. Therefore, statistical significance can be used to determine the real results from the sample. Statisticians and data scientists can apply statistical significance formulas to the desired outcomes from data.


Let’s wrap it up!!


Significance in statistics is one of the best ways to validate tests and for getting relevant analyses. It does not mean that the data will be 100% unbiased or accurate. Here the survey or poll respondents can lie and provide wrong information. 


Apart from this, the survey could be biased because of the non-uniform demographics’ representations. Even the poorly used significance in the statistics formula can result in incorrect insights. This is possible if the significance level selected is wrong.


Therefore, make sure that the statistical significance should be correct so that business decisions also be correct. You can use the above steps to get relevant results. This further leads to better decision making and better growth of a business.



Admin of, Yaman shares his own ideas in the form of articles on this website. His creative ideas, passion and enthusiasm can be seen in his articles. Keep in touch with him for more interesting and helpful articles....

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *