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A primer on p-value thresholds and α-levels – two different kettles of fish

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  • Hirschauer, Norbert
  • Gruener, Sven
  • Mußhoff, Oliver
  • Becker, Claudia

Abstract

It has often been noted that the “null-hypothesis-significance-testing” (NHST) framework is an inconsistent hybrid of Neyman-Pearson’s “hypotheses testing” and Fisher’s “significance test-ing” approach that almost inevitably causes misinterpretations. To facilitate a realistic assessment of the potential and the limits of statistical inference, we briefly recall widespread inferential errors and outline the two original approaches of these famous statisticians. Based on the under-standing of their irreconcilable perspectives, we propose “going back to the roots” and using the initial evidence in the data in terms of the size and the uncertainty of the estimate for the pur-pose of statistical inference. Finally, we make six propositions that hopefully contribute to im-proving the quality of inferences in future research.

Suggested Citation

  • Hirschauer, Norbert & Gruener, Sven & Mußhoff, Oliver & Becker, Claudia, 2020. "A primer on p-value thresholds and α-levels – two different kettles of fish," SocArXiv d46m2, Center for Open Science.
  • Handle: RePEc:osf:socarx:d46m2
    DOI: 10.31219/osf.io/d46m2
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    References listed on IDEAS

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    1. Hirschauer, Norbert & Grüner, Sven & Mußhoff, Oliver & Becker, Claudia, 2020. "Inference in economic experiments," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-14.
    2. Hirschauer, Norbert & Grüner, Sven & Mußhoff, Oliver & Becker, Claudia & Jantsch, Antje, 2020. "Can p-values be meaningfully interpreted without random sampling?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14, pages 71-91.
    3. Campbell R. Harvey, 2017. "Presidential Address: The Scientific Outlook in Financial Economics," Journal of Finance, American Finance Association, vol. 72(4), pages 1399-1440, August.
    4. Hirschauer Norbert & Grüner Sven & Mußhoff Oliver & Becker Claudia, 2019. "Twenty Steps Towards an Adequate Inferential Interpretation of p-Values in Econometrics," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(4), pages 703-721, August.
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    Cited by:

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