Statistical vs.

practical significance

i. Statistical significance denotes to the doubtfulness that the result is

achieved by chance, i.e., probability of correlation between two
variables exists. Practical significance denotes to the correlation
between the real world situation and the variables.
ii. Statistical significance depends upon the size of the sample
whereas, practical significance depends upon objective, external
factors like cost, time, etc.
iii. Statistical significance does not assurance practical significance,
but in case of practically significant data must be statistically
significant.

For example

In a survey decided by collage-authority of a city on contribution in

sports by collage-going boys and girls, they found that 60%
of boys and 57% of girls contribute in sports. Thus from the survey it is
observed that a 3% difference between collage-going boy and girl-
contribution in sports. Now the argument is how much significance
this 3% difference has practically as well as statistically. Statistical
significance of this 3% depends upon the size of the sample data used
to determine the percentage of contribution in sports. If, it is a
sufficiently large sample data size used to determine the percentage,
then the difference is statistically significant, and if a very small
sample data size is used then the difference is statistically
insignificant. So we can say that, in case of bigger sample data size,
more statistical significance of a computed figure.
On the other hand practical significance of this 3% difference rises if
decision is made or action is taken or needs to be taken on the basis of
this 3% difference. If cost permits, the collage may consider promoting
girl students participation in sports in order to bring about more
gender parity in sports. In this case the 3% difference though small,
may be practically significant.