Inverse Probability Error

This blog is based on the homonymous paper by Norbert Hirschauer, Sven Grüner, Oliver Mußhoff, and Claudia Becker in the Journal of Economics and Statistics. It is motivated by prevalent inferential errors and the intensifying debate on p-values – as expressed, for example in the activities of the American Statistical Association including its p-value symposium in 2017 and the March 19 Special Issue on Statistical inference in the 21st century: A world beyond P < 0.