This guide explains in simple terms the main ideas behind statistical tests and gives tips on how to choose and use them well.
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Statistical testing can look difficult and scary. But if you understand a few key ideas, you can use tests easily to get strong insights from data.
How are statistical tests used?
Statistical tests figure out if trends and correlations in data are real or just happenstance. They find out if the results are statistically important.
Significance testing is a way to prove mathematically that links found in data are real relationships and not just a result of chance.
What is the point of a statistical test?
Most statistical tests compare data trends to a “null hypothesis,” which says that there are no underlying relationships.
A p-value is found by figuring out how unlikely it is that data trends would happen by chance. If the p-value is less than a set significance level (usually 0.05), the null hypothesis is rejected in favor of an alternative hypothesis. Statistics say that the result is important.
Types of Statistical Tests That Matter
There are many types of statistical tests, but here are some popular ones:
Hypothesis Tests: Use the null hypothesis to test your beliefs. T-tests, ANOVA, and chi-square tests.
Correlation tests measure how strongly two factors are linked to each other. Tests by Pearson and Spearman.
Using independent factors, regression analysis builds models and makes predictions about what will happen.
Non-parametric tests are used when test assumptions are not met by the data. Mann-Whitney and Wilcoxon tests.
How to Decide Which Statistical Test to Use
When choosing a test, keep these things in mind:
– Goal – What does comparing mean? Putting things together? Modeling for the future?
– What are the different kinds of data? Distributions that are normal or not?
– Variables: Are they connected or grouped? What kind of person are you?
– Sample size: Is it big enough to make the test valid?
The key is to match the test goal to the characteristics of the data.
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Advice on How to Use Statistical Tests
When giving a test, keep these things in mind:
– Make sure that the conditions are true, such as size, distribution, independence, etc.
– Use power to figure out a good sample size
– Set the right levels of confidence and levels of importance
– Use changes for more than one test at the same time
Methodology, parameters, findings, and conclusions should all be written down.
– Only act on results that are statistically significant
Important Lessons
At their core, statistical tests make sure that trends in the data are caused by real relationships and not just by luck. Credible results come from using the right types of tests in the right way.
By getting good at these basic rules of statistical testing, you’ll be able to find the powerful insights hidden deep in your data.
