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.