Risk Calculations in Epidemiology and Biostatistics: Odds Ratio, Risk Ratio, AR & ARR Explained

Understanding risk calculations is essential in epidemiology and biostatistics, especially when interpreting research studies. In this post, we break down the most important concepts: odds ratio, risk ratio (relative risk), attributable risk (AR), absolute risk reduction (ARR), and how to interpret them using simple tables and examples.


🧮 The Foundation: The 2×2 Table

Every biostatistical calculation begins with the 2×2 contingency table. It is structured as:

Outcome PositiveOutcome Negative
Exposure (+)AB
Exposure (−)CD

Example: Smoking (exposure) vs. Lung Cancer (outcome)

  • A = Smokers who developed lung cancer
  • B = Smokers who did not develop lung cancer
  • C = Non-smokers who developed lung cancer
  • D = Non-smokers who did not develop lung cancer

🔁 Odds Ratio (OR)

Used in case-control studies.

Formula:
OR=A×DB×C\text{OR} = \frac{A \times D}{B \times C}OR=B×CA×D​

Example:

  • Exposed = 2500 (1500 diseased, 1000 healthy)
  • Unexposed = 2500 (500 diseased, 2000 healthy)

OR=1500×20001000×500=3,000,000500,000=6\text{OR} = \frac{1500 \times 2000}{1000 \times 500} = \frac{3,000,000}{500,000} = 6OR=1000×5001500×2000​=500,0003,000,000​=6

Interpretation: People exposed to the carcinogen are 6 times more likely to develop lung cancer compared to unexposed.


📊 Risk Ratio (Relative Risk – RR)

Used in cohort studies where participants are followed over time.

Formula: RR=A/(A+B)C/(C+D)\text{RR} = \frac{A / (A + B)}{C / (C + D)}RR=C/(C+D)A/(A+B)​

Example:

  • Exposed: 300 (90 ill)
  • Unexposed: 200 (30 ill)

RR=90/30030/200=0.3/0.15=2\text{RR} = \frac{90/300}{30/200} = 0.3 / 0.15 = 2RR=30/20090/300​=0.3/0.15=2

Interpretation: Risk of disease is 2 times higher in exposed group.


🔍 Interpretation of OR and RR

  • = 1 → No association (neutral risk)
  • > 1 → Exposure increases risk (potentially harmful)
  • < 1 → Exposure decreases risk (potentially protective)

🧾 Attributable Risk (AR) vs. Absolute Risk Reduction (ARR)

Both reflect the difference in risk between two groups but are used in different contexts.

TermUsed ForFormulaMeaning
ARHarmful exposuresAA+B−CC+D\frac{A}{A+B} – \frac{C}{C+D}A+BA​−C+DC​Risk added by exposure (e.g. smoking)
ARRBeneficial interventionsCC+D−AA+B\frac{C}{C+D} – \frac{A}{A+B}C+DC​−A+BA​Risk reduced by treatment (e.g. a drug)

🧪 Example: Attributable Risk

  • Smokers: 200 (80 cough cases)
  • Non-smokers: 300 (30 cough cases)

AR=80200−30300=0.4−0.1=0.3\text{AR} = \frac{80}{200} – \frac{30}{300} = 0.4 – 0.1 = 0.3AR=20080​−30030​=0.4−0.1=0.3

30% of chronic cough cases in smokers can be attributed to smoking.


💊 Example: Absolute Risk Reduction

  • Treatment group: 1000 (50 heart attacks)
  • Control group: 1000 (150 heart attacks)

ARR=1501000−501000=0.15−0.05=0.1\text{ARR} = \frac{150}{1000} – \frac{50}{1000} = 0.15 – 0.05 = 0.1ARR=1000150​−100050​=0.15−0.05=0.1

The drug reduced heart attack risk by 10%.


🧠 Easy Tip to Remember

👉 Always subtract the smaller risk from the larger one.
👉 If it’s a treatment, it’s ARR.
👉 If it’s a toxin/harmful exposure, it’s AR.


📉 Attributable Risk Percentage (AR%)

Shows what percent of the total risk is due to the exposure.

Formula: \text{AR%} = \left( \frac{\text{AR}}{\text{Risk in exposed}} \right) \times 100

Example (smoking): AR=0.3,Risk in smokers=0.4AR%=0.30.4×100=75%\text{AR} = 0.3,\quad \text{Risk in smokers} = 0.4 \quad \text{AR\%} = \frac{0.3}{0.4} \times 100 = 75\%AR=0.3,Risk in smokers=0.4AR%=0.40.3​×100=75%

75% of cough risk among smokers is due to smoking.


🎯 Key Takeaways

  • Case-control studies → Use Odds Ratio (OR)
  • Cohort studies → Use Risk Ratio (RR)
  • Attributable Risk (AR) → Toxins/carcinogens
  • Absolute Risk Reduction (ARR) → Treatments/interventions
  • AR% → Shows how much of the risk is actually caused by exposure

📸 Ultra-Realistic Visual Summary


This article simplifies one of the most feared parts of biostats. Practice creating the 3×2 table, understand the logic, and you’ll master these calculations in no time.

Stay tuned for the next lecture in our Epidemiology and Biostats Series!

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