Power of a Test

Power of a Test: This term refers to the ability of a statistical test to detect a difference when one actually exists. It measures the test’s sensitivity or its capacity to correctly identify true effects. Depending on the context, true effects could mean distinguishing between two different marketing campaigns, product versions, or anything similar. A test with high power reduces the risk of committing a Type II error, which happens when the test fails to detect a true difference or effect.