Psychology journal bans statistical inference; knocks down server

In its recent editorial, the journal Basic and Applied Social Psychology announced that it will no longer accept papers that use classical statistical inference. No more p-values, t-tests, or even… confidence intervals!  “prior to publication, authors will have to remove all vestiges of the NHSTP (p-values, t-values, F-values, statements about ‘‘significant’’ differences or lack thereof, and so on)… confidence intervals also are banned from BASP” Many statisticians would agree that it is high time to move on from p-values and statistical inference to practical significance, estimation, more elaborate non-parametric modeling, and resampling for avoiding assumption-heavy models. This is especially so now, … Continue reading Psychology journal bans statistical inference; knocks down server

Stock performance and CEO house size study

The BusinessWeek article “The CEO Mega-Mansion Factor” (April 2, 2007) definitely caught my attention — Two finance professors (Liu and Yermack) collected data on house sizes of CEOs of the S&P 500 companies in 2004. Their theory is “If home purchases represent a signal of commitment by the CEO, subsequent stock performance of the company should at least remain unchanged and possibly improve. Conversely, if home purchases represent a signal of entrenchment, we would expect stock performance to decline after the time of purchase.” The article summarizes the results: “[they] found that 12% of [CEOs] lived in homes of at … Continue reading Stock performance and CEO house size study