Julius Horvath
Feb 6 · 1 min read

Right on. Statistical significance is context dependent. It needs to be chosen appropriately. Not enough people understand that there is a trade-off for having higher certainty. It’s like the court system — you have to find the right evidence requirements for each crime so you’re not locking up a bunch of innocent people nor letting a bunch of criminals go. The amount of evidence required increases with the severity of potential punishment. In business setting if someone waits to establish 95% certainty (are they publishing a paper?!) when they’re just exploring and looking for interesting signals, they’re going to miss everything and their competitors will capitalize.

    Julius Horvath

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