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Table 6 Effect sizes and expost-post power test

From: The impact of US sugar prices on the financial performance of US sugar-using firms

Variable ROA MTB
Lower effect size threshold Upper effects size threshold Lower effect size threshold Upper effects size threshold
ln(UWpra) − 0.18 0.16 − 0.11 0.12
 Power   0.85   0.99
ln(UWpre) − 0.27 0.24 − 0.16 0.16
 Power   0.90   0.28
ln(UWprb) − 0.20 0.18 − 0.13 0.13
 Power   0.91   0.03
  1. Notes: Variable definitions are in Table 1. Null hypothesis: relative sugar price does not affect sugar-using firm financial performance (ROA and MTB). The analysis over the different effect sizes identifies the upper and lower thresholds of the effect size past which the type II error probability is less than 0.20. The lower and upper thresholds correspond with a power > 0.80 (a type II error rate < 0.20). Ex post power of tests evaluated at a nominal type I error rate of 0.05