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How to Calculate Statistical Significance.
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How to Calculate Statistical Significance.

Rosemary Njeri

Statistical significance is a determination that a relationship between two or more variables is caused by something other than chance.

A statistically significant result isn’t attributed to chance and depends on two key variables which are sample size and effect size.

Formula to calculate statistical significance.

  • Create a null hypothesis and an alternative hypothesis.
  • Determine the significance level.
  • Decide on the type of test you’ll use.
  • Perform a power analysis to find out your sample size.
  • Calculate the standard deviation.
  • Use the standard error formula.
  • Determine the t-score.
  • Find the degrees of freedom.
  • Use a t-table, ( a p value that is less than 0.05 is considered significant).

Example:

For instance if since you created a new website design the calculation of the statistical significance resulted in a p-value of 3% or 0.03.

Given that it’s below 0.05, this is a statistically significant result meaning that the increase in customers was not left to random chance.

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