In spite of the fact that the Neyman–Pearson theory of testing is the official theory of statistical testing, most research publications in the social sciences use a pattern of inductive reasoning that is characteristic of Fisherian tests of significance. The exact structure and rationale of this pattern of reasoning is widely misunderstood. The goal of the paper is to describe precisely the pattern and its rationale, and to show that while it is far more cogent than Fisher's critics have realized, it does not logically sustain the inferences it sanctions.

This paper presents parts of a theory of radical translation with applications to the problem of construing reference. First, in sections 1 to 4 the general standpoint, inspired by Goodman's approach to induction, is set forth. Codification of sound translational practice replaces the aim of behavioral reduction of semantic notions. The need for a theory of translational projection (manual construction on the basis of a finite empirical correlation of sentences) is established by showing the anomalies otherwise resulting (e.g. from Quine's position). Then in section 5 a partial characterization of what constitutes an “admissible translation manual” is developed in the form of rules of translational projection governing correspondence of sentence-parts of a language-pair. Finally, in section 6, we give applications of the theory to the problem of construing reference. The general rules of section 5 suffice to rule out deviant referential schemes which have been held inscrutable alternatives to standard schemes.

In Part I (Philosophy of Science, Vol. 41 No. 2, June, 1974) it was argued that in order to rebut Humean sceptical arguments, and thus show that it is possible for pure science to be rational, we need to reject standard empiricism and adopt in its stead aim oriented empiricism. Part II seeks to articulate in more detail a theory of rational scientific discovery within the general framework of aim oriented empiricism. It is argued that this theory (a) exhibits pure science as a rational enterprise (b) enables us to resolve problems associated with the key notions of simplicity and intelligibility (c) has important implications both for philosophy of science and for scientific practice itself.