# Relative Risk Ratio Analysis

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The terms risks and odds are commonly reported exchangeably as if they describe the same quantity. However, statistically risk and odds have specific meanings and have different calculations, which may misinterpreted the results of a systematic review if ignored.
Risk is a probability; odds on the other hand are chances or a ratio, Probability is the likelihood of an event or outcome to occur in relation to all possible events or outcomes. For example, by flipping a coin, the risk that you will get heads is 1 win out of 2 total possible outcomes or 50%.
Relative risk and also called risk ratio compares risk of an event or exposure with those without exposure, e.g. the relative risk of getting caries for sugar consumers compared to non-sugar consumers. Relative risk depends on the incidence of an event given that we already know the exposure state of its participants. It can
For example, if we have two groups “experimental and control” both are divided according to the outcome to occur or not, as experimental group with outcome occurring “group a”, experimental with outcome not occurring “group b”, control with outcome “group c” control with no outcome “group d”
RR = AR in experimental / AB in control = (a/ a+b) / (c/ c+d)
Odds on the other hand is the probability of an event or outcome over the probability of a certain event or outcome not occurring.
The odds ratio is the “ratio of ratio”, it compares the presence to absence of an exposure that already had a known outcome. For example, Presence to absence ratio of smoking cigarette in those who have brown teeth staining compared with the same ratio in those who don’t have brown teeth staining. It can be calculated even if we don’t know the probabilities in the groups. That is why odds ratio can be used to interpret the results of case control as well as prospective cohort

• ## Transaction Utility And Probability Theory

She notes that three theories have particular relevance to sales promotion; that is threshold theory (Weber’s law), adaptation-level theory, and assimilation-contract theory. She states that threshold theory (Weber’s law) is concerned with the question of how much of a stimulus change is necessary in order for it to be noticed. She cites studies which show the evidence that there is a region of price insensitivity around a brand’s expected price within which price changes do not significantly affect purchase probabilities. Price differences outside that region, in contrast, she points out, were found to have a significant impact on consumer brand purchase probabilities. The findings imply that price changes of 5 % or less of the brand’s average non-promotional price do not result in significant changes.…

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• ## Daniel Kahneman's Theories Of Behavioral Economics

Despite the conflicting preferences, both examples are essentially identical. In example 1 there is a 50% chance one could get \$2000, a 50% chance of receiving \$1000, or forgoing the gamble and getting \$1500. Well, in example 2 there is a 50% chance one could get \$2000, a 50% chance of receiving \$1000, or forgoing the gamble and getting \$1500. Where does this discrepancy come from? Humans are naturally loss averse beings; we place a greater value on a loss than we do to a gain of the same amount.…

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• ## Chapter 7: Opmum Risk Portfolios

Rather, the incremental benefits from additional diversification are most important when you are least diversified. Restricting Hennessy to 10 instead of 20 issues would increase the risk of his portfolio by a greater amount than would a reduction in the size of the portfolio from 30 to 20 stocks. In our example, restricting the number of stocks to 10 will increase the standard deviation to 23.81%. The 1.76% increase in standard deviation resulting from giving up 10 of 20 stocks is greater than the 1.14% increase that results from giving up 30 of 50 stocks. The point is well taken because the committee should be concerned with the volatility of the entire portfolio.…

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• ## Hypothesis Test Hypothesis

This is because the team performed a one tailed Z-Test to determine with 95% confidence that Hispanic wages were greater than \$30,000 per year. This is a one tailed test because the alternate hypothesis is only proven when the Z Value is less than the critical value of \$30,000 in this case. With a Z Value of .3163, we find that our Z-Test has yielded a result significantly higher than -1.645, which proves H0, or that Hispanic pay is greater than \$30,000 per year. The test also concluded that Hispanic workers make more than Caucasian workers on average. We also gathered data showing the average age of Caucasian workers is higher than that of Hispanic…

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• ## Chi Square Test Case Study

Here, the possibility that the difference is due to mere random chance is less than 1% therefore the difference in sales performance between males (mean=4175.92) and females (mean=5675.97) in week 2 is strongly significant. A conclusive argument can be drawn that in week 2, females have a better sales performance than male…

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• ## Investment: Case Study: BF016 Investments

While both measures determine whether two variables are negative or positive, the correlation will support more information when two variables move together. The correlation coefficient is always between -1 and 1. If the correlation is 1, the stocks are positive move together, and if the correlation is -1, the stocks are move to opposite direction with negative way. If the correlation is 0, there is random in the moving between two stocks. The standard deviation of a multi-stock portfolio is calculated via the covariance as well.…

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• ## Regression Analysis Report Sample

Slide 13: If we looked at the row titled “Level of Significance of 1-Tailed Test’, a significance level of 0.0005 is found. Again, I want to emphasize that SPSS will calculate whether or not a significant change has occurred. We can say that our obtained t statistic of 4.34 is greater than 3.373 or the probability of obtaining a t statistic of 4.34 is less than .001 (p <.001). This p value is below our .05 alpha level. The probability of obtaining the difference of between the variables, if the null hypothesis were true, is extremely low.…

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Often parties with conflicting interests face monetary incentives that make them to follow a misreporting strategy which leads to an advantageous outcome. Based on “homo-economicus” assumption, a lying strategy is used when is beneficial for an individual, regardless of its consequences to the other people.…

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• ## Earnings Quality Analysis

Are they controllable? And are they liquid (have a future cash value)?” McClure (2004). McClure (2004) highlighted the key factors which determine the quality of reported earnings, it argued that in some periods earnings may be high due to special circumstances such as sale of assets; this form of revenue cannot be repeated so it is of low quality as it is not informative of the financial performance of the firm. The Controllable feature of earnings quality outlined by McClure (2004) indicates that macroeconomic factors may also have favourable effects on a firm’s financial performance by raising earnings. An example of this may be inflation or favourable movements in the exchange rate (for businesses based in one country but operate in another).…

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• ## Applications Of Probability In Probability

In definition, probability refers to the measure of the likelihood of an event happening. The probability for any event occurring falls between 1 percent and 100 percent thus meaning that the interpreted meaning of a probability equals the subject meaning held of the probability (Grinstead et al, 1997). However, it is worth noting that the application of probability or assigning of probability to the events in the effort to gratifying the axioms of probability follows some rules or basics (Grinstead et al, 1997). One of the basics is the random variable that refers to the quantity with uncertain expected future values. For instance, it is of uncertainty to determine the price of the products in the near future given the changing dynamic…

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