What is it?

Practical significance considers whether an observed change is meaningful in real-world terms, regardless of statistical significance.

It focuses on business impact.

Examples in Action

• Small conversion lifts with negligible revenue impact
  
• Changes that are statistically valid but operationally irrelevant
  
• Prioritising high-impact initiatives
  
• Aligning results with business value
  

Typical Outcomes / Results

• Better prioritisation decisions
  
• Reduced focus on marginal gains
  
• Stronger alignment with outcomes
  
• Improved ROI focus
  

This glossary entry reflects applied decision-making principles.