Saturday 21 July 2012

Observed Power

I want to comment quickly on an interesting paper published by The American Statistician journal in 2001 about observed power.

Observed power is calculated after the fact, when the sample is being analyzed and the results are at hand. It is calculated just like one would calculate power usually, but using the observed difference in means (considering a test of means) and observed variability. Usually the observed power is calculated when the null hypothesis fails to be rejected likely because the researcher wants to have an idea whether s/he can or cannot interpret the results as evidence of the truthfulness of the null hypothesis. In these cases, the higher the observed power, more one would take the fail of rejection as acceptance. As the paper well advise, this type of power calculation is non sense just because just because it is directly associated with p-valor - the lower the p-value, the higher the power. Therefore if two tests fail to reject the Null, the one with lower p-value (more evidence against the Null) will have higher observed power (more evidence in favor of the Null according to the usual interpretation above). Therefore this type of power calculation is not only useless but leads to misleading conclusions.

I have lately involved myself into some debates about the role of statisticians especially in teaching statistics, spreading the power of the tool we use and also correcting the many misuses of statistics be it by statisticians or not. I believe this is the sort of information where we need to make the difference, this is the sort of information that differentiates who press buttons from those who do real statistics.

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