Decimal Dust, Significant Digits, and the Search for Stars

The practice of rounding statistical results to two decimal places is one of a large number of heuristics followed in the social sciences. In evaluating this heuristic, the authors conducted simulations to investigate the precision of simple correlations. They considered a true correlation of .15 and ran simulations in which the sample sizes were 60, 100, 200, 500, 1,000, 10,000, and 100,000. They then looked at the digits in the correlations’ …