Misinterpretation and Misuse of P-Values and Confidence Intervals

Dave Giles has some good details on common problems of misinterpretation:

There are so many things in statistics (and hence in econometrics) that are easily, and frequently, misinterpreted. Two really obvious examples are p-values and confidence intervals.

I’ve devoted some space in earlier posts to each of these concepts, and their mis-use. For instance, in the case of p-values, see the posts here and here; and for confidence intervals, see here and here.

Click through for more in this vein, including a reference to an interesting-looking paper.

Related Posts

Naive Bays in R

Zulaikha Lateef takes us through the Naive Bayes algorithm and implementations in R: Naive Bayes is a Supervised Machine Learning algorithm based on the Bayes Theorem that is used to solve classification problems by following a probabilistic approach. It is based on the idea that the predictor variables in a Machine Learning model are independent of […]

Read More

Forensic Accounting: Cohort Analysis

I continue my series on forensic accounting techniques with cohort analysis: In the last post, we focused on high-level aggregates to gain a basic understanding of our data. We saw some suspicious results but couldn’t say much more than “This looks weird” due to our level of aggregation. In this post, I want to dig […]

Read More

Categories

February 2019
MTWTFSS
« Jan Mar »
 123
45678910
11121314151617
18192021222324
25262728