Abstract
The problems with p-values have been extensively discussed recently, but there is little work about the broader aspects of scientific inference of which p-values are but one part. This article explains how scientific inference can be characterized as Bayesian inference to the best explanation, which involves developing and assessing theories based on their fit with background facts and their ability to explain the observed data better than competing theories can. These factors translate into prior odds and Bayes factor respectively, which determine posterior odds under Bayesian inference. I provide examples from accounting research to illustrate how attention to these points makes for better research designs and stronger justification for inferences.
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Articles in the same Issue
- Frontmatter
- Research Articles
- Empirical Accounting Seminars: Elephants in the Room
- Limits of Empirical Studies in Accounting and Social Sciences: A Constructive Critique from Accounting, Economics and the Law
- Accounting Research’s “Flat Earth” Problem
- Accounting Research as Bayesian Inference to the Best Explanation
- The Elephant in the Room: p-hacking and Accounting Research
- De-emphasizing Statistical Significance
- Statistical versus Economic Significance in Accounting: A Reality Check
- Another Way Forward: Comments on Ohlson’s Critique of Empirical Accounting Research
- Setting Statistical Hurdles for Publishing in Accounting
Articles in the same Issue
- Frontmatter
- Research Articles
- Empirical Accounting Seminars: Elephants in the Room
- Limits of Empirical Studies in Accounting and Social Sciences: A Constructive Critique from Accounting, Economics and the Law
- Accounting Research’s “Flat Earth” Problem
- Accounting Research as Bayesian Inference to the Best Explanation
- The Elephant in the Room: p-hacking and Accounting Research
- De-emphasizing Statistical Significance
- Statistical versus Economic Significance in Accounting: A Reality Check
- Another Way Forward: Comments on Ohlson’s Critique of Empirical Accounting Research
- Setting Statistical Hurdles for Publishing in Accounting