How does effect size impact hypothesis testing?

  • Effect size has no impact on hypothesis testing
  • Larger effect sizes always lead to rejection of the null hypothesis
  • Larger effect sizes always lead to smaller p-values
  • Larger effect sizes increase the statistical power of the test
Effect size measures the magnitude of the difference or the strength of the relationship in the population. A larger effect size means a larger difference or stronger relationship, which in turn increases the statistical power of the test. Power is the probability that the test correctly rejects the null hypothesis when the alternative is true.
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