In today’s Wall Street Journal, The Numbers Guy (Carl Bialik) reports on a unanimous ruling by the Supreme Court that companies cannot hide behind statistical significance (lack thereof in this case) as an excuse for nondisclosure of adverse research. He passes along this practical advice:
“A bigger effect produced in a study with a big margin of error is more impressive than a smaller effect that was measured more precisely.”
– Stephen Ziliak, economics professor
However, this legal analysis of the ruling cautions that statistical significance remains relevant for assessing materiality of an adverse event.
Given all this, we can be certain of only one thing – more lawsuits.