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A Primer on p-Value Thresholds and α-Levels – Two Different Kettles of Fish

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  • Hirschauer, Norbert
  • Grüner , Sven

Abstract

It has often been noted that the “null-hypothesis-significance-testing” (NHST) framework is an incon-sistent hybrid of Neyman-Pearson’s “hypothesis test-ing” and Fisher’s “significance testing” 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 ap-proaches of these famous statisticians. Based on the understanding of their irreconcilable perspectives, we propose “going back to the roots” and using the ini-tial evidence in the data in terms of the size and the uncertainty of the estimate for the purpose of statisti-cal inference. Finally, we make six propositions that hopefully contribute to improving the quality of infer-ences in future research.

Suggested Citation

  • Hirschauer, Norbert & Grüner , Sven, 2021. "A Primer on p-Value Thresholds and α-Levels – Two Different Kettles of Fish," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(02), January.
  • Handle: RePEc:ags:gjagec:343294
    DOI: 10.22004/ag.econ.343294
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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.
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    4. 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.
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    1. Heckelei, Thomas & Huettel, Silke & Odening, Martin & Rommel, Jens, 2021. "The replicability crisis and the p-value debate – what are the consequences for the agricultural and food economics community?," Discussion Papers 316369, University of Bonn, Institute for Food and Resource Economics.

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