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Size matters: the use and misuse of statistical significance in discrete choice models in the transportation academic literature
TransportationTransportation

Size matters: the use and misuse of statistical significance in discrete choice models in the transportation academic literature

G. Parady and K. W. Axhausen

Giancarlos Parady and Kay W. Axhausen examine transportation studies published from 2014 to 2018, revealing widespread shortcomings in how statistical significance is interpreted in discrete choice research. With 39% of studies relying exclusively on coefficient signs, 67% failing to separate statistical from practical significance, and none considering statistical power, the authors recommend a stronger focus on effect magnitudes and policy-relevant measures.... show more
Abstract
In this paper we review the academic transportation literature published between 2014 and 2018 to evaluate where the field stands regarding the use and misuse of statistical significance in empirical analysis, with a focus on discrete choice models. Our results show that 39% of studies explained model results exclusively based on the sign of the coefficient, 67% of studies did not distinguish statistical significance from economic, policy or scientific significance in their conclusions, and none of the reviewed studies considered the statistical power of the tests. Based on these results we put forth a set of recommendations aimed at shifting the focus away from statistical significance towards proper and comprehensive assessment of effect magnitudes and other policy relevant quantities.
Publisher
Transportation
Published On
Sep 28, 2023
Authors
Giancarlos Parady, Kay W. Axhausen
Tags
statistical significancetransportation researchdiscrete choice modelseffect magnitudestatistical powerpolicy relevance
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