Statistical significanceplays a pivotal role instatisticalhypothesistesting. It is used to determine whether the null hypothesis should be rejected or retained.

Statistical significanceplays a pivotal role instatisticalhypothesistesting. It is used to determine whether the null hypothesis should be rejected or retained.

The methods of inference used to support or reject claims based on sample data are known as tests of significance.Every test of significance begins with a null hypothesis H0. H0 represents a theory that has been put forward, either because it is believed to be true or because it is to be used as a basis for argument, but has not been proved. For example, in a clinical trial of a new drug, the null hypothesis might be that the new drug is no better, on average, than the current drug.

Test of significance is used to test a claim about an unknown population parameter. A significance test uses data to evaluate a hypothesis by comparing sample point estimates of parameters to values predicted by the hypothesis.

Significance testingaims to quantify evidence against a particular hypothesis being true. We can think of it astestingto guide research. We believe a certain statement may be true and want to work out whether it is worth investing time investigating it.