Viewpoint: Practical Uses of Statistical Power in Business Research Studies

Abstract The concept of power in statistical hypothesis testing is typically introduced by emphasizing (a) the relationship with Type I and Type II errors and (b) the use of power for planning sample sizes. In this article, we propose use of power information subsequent to results of testing hypotheses through use of statistical tests in business research studies to assist in interpretation of existing data and for guidance in determining whether additional data might be necessary. We provide several examples and recommendations on how such posttest use of power might be integrated within business statistics courses.