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Dictionary of Evidence-based Medicine.pdf

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<strong>Dictionary</strong> <strong>of</strong> <strong>Evidence</strong>-<strong>based</strong> <strong>Medicine</strong> 147<br />

Significance level<br />

When setting up a hypothesis test, we start <strong>of</strong>f by formulating a null<br />

hypothesis (H 0 ). In frequentist or classic statistics, we postulate a probability<br />

model such that the difference in effect between two treatments<br />

would be normally distributed with mean zero and a variance which we<br />

would estimate from the sample drawn. We also postulate an alternative<br />

hypothesis (Hj), such that the difference in mean is not zero. This alternative<br />

hypothesis will be accepted if the null hypothesis is rejected <strong>based</strong> on<br />

a previously set level <strong>of</strong> error which we would be prepared to accept. This<br />

error level (Type 1 error), relating to rejecting the null hypothesis when it<br />

is in fact true, is the significance level <strong>of</strong> the test. Sometimes the probability<br />

<strong>of</strong> a particular observation under the probability model postulated under<br />

H 0 is also referred to as the significance level.<br />

Smith, Adam (1723-90)<br />

Adam Smith, a Scot, is widely regarded as the father <strong>of</strong> modern economics.<br />

His book, An Enquiry into the Nature and Causes <strong>of</strong> the Wealth <strong>of</strong> Nations,<br />

published in 1776, is looked upon by many economists as the most<br />

influential book on economics ever written. His main thesis was that if<br />

each person were free to pursue his or her own interests, then nature<br />

would guide the economy as if it was an 'invisible hand' and there was no<br />

need for government intervention. Progress, he argued, would result from<br />

new technology and the specialization <strong>of</strong> labour. His ideas were further<br />

developed by others to lead to the school <strong>of</strong> thought now popularly<br />

referred to as the classical school.<br />

Societal perspective<br />

In analysing the impact <strong>of</strong> a health care intervention, the perspective<br />

adopted will affect the outcome and it is generally accepted that a societal<br />

perspective, which takes account <strong>of</strong> the effect on the social welfare <strong>of</strong><br />

everyone, is preferable. In such an analysis, all medical and non-medical<br />

costs and all personal indirect costs, irrespective <strong>of</strong> who pays, are included.<br />

Health prevention strategies which show up poorly when more restricted<br />

perspectives are used, <strong>of</strong>ten show up quite well when this societal perspective<br />

is adopted.<br />

Specificity<br />

In diagnostic testing, the specificity is the proportion <strong>of</strong> subjects without<br />

disease who test negative.

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