Calculation
Relative risk is based on the probabilities of risk for two different groups as follows.Relative risk = group-1-probability / group-2-probabilityExample #1
People who smoke have a 10% lifetime chance of developing a particular type of cancer. Non-smokers have a 0.5% chance of developing the cancer.Relative risk = 0.10 / 0.005 = 20This means that smokers are 20 times as likely to get the disease as non-smokers.Example #2
Snowboarders in their 20s have a 1% chance of an injury requiring a hospital visit in a year. Non-snowboarders in their 20s have a 0.5% chance.Relative risk = 0.01 / 0.005 = 2As such, snowboarders in this age group are twice as likely to require a hospital visit for an injury.Example #3
A company with a high debt load has a 40% chance of going bankrupt in the next 5 years. The average for comparable companies of the same size is a risk of 0.5% over five years.Relative risk = 0.40 / 0.005 = 80The company is 80 times more likely to go bankrupt than its peers.Notes
Examples are illustrative.| Overview: Relative Risk | ||
Type | ||
Definition | The ratio of the risk faced by one group to the risk faced by another group. | |
Also Known As | Risk Ratio | |
Related Concepts | ||
