Wager Mage
Photo by Monstera Pexels Logo Photo: Monstera

What does an odds ratio of 1.20 mean?

An OR of 1.2 means there is a 20% increase in the odds of an outcome with a given exposure. An OR of 2 means there is a 100% increase in the odds of an outcome with a given exposure.

Is swatting a wasp a good idea?
Is swatting a wasp a good idea?

Do Not Swat. When something creepy crawly comes your way it's very hard to control the impulse to swat it away and kill it. When it comes to bees...

Read More »
Do you pay tax on winnings?
Do you pay tax on winnings?

Although you don't have to pay taxes on your winnings, there are a number of things to keep in mind once the money has been sent to you. If your...

Read More »

Written by Clay Smith

Idiot’s Guide

That’s right – I will be your guide. The good thing about having an idiot for a guide is that I have to make it simple to understand it myself, which means, hopefully, you will understand it as well.

Probability or Odds

Probability

Probability means the risk of an event happening divided by the total number of people at risk of having that event. I will use the example in a recent JAMA article. In a deck of 52 cards, there are 13 spades. So, the risk (or probability) of drawing a card randomly from the deck and getting spades is 13/52 = 0.25 = 25%. The numerator is the number of spades, and the denominator is the total number of cards.

Odds

Odds seems less intuitive. It is the ratio of the probability a thing will happen over the probability it won’t. In the spades example, the probability of drawing a spade is 0.25. The probability of not drawing a spade is 1 – 0.25. So the odds is 0.25/0.75 or 1:3 (or 0.33 or 1/3 pronounced 1 to 3 odds).

Moving back and forth

To go from odds to probability, simply take the numerator/(denominator + numerator). In the spades example, the odds of 1/3 is converted by taking 1/1+3 = 0.25 – and now we are back to probability. To go from probability to odds, simply take the numerator/(denominator-numerator). In the spades example, given that the probability of drawing a spade is 1/4, take 1/(4-1) = 1:3 odds or odds = 0.33.

Statistical Significance

If an odds ratio (OR) is 1, it means there is no association between the exposure and outcome. So, if the 95% confidence interval for an OR includes 1, it means the results are not statistically significant. Example, exposure to colored vs white Christmas lights was associated with an increase in jocularity score, OR = 1.2 (95%CI 0.98-1.45). Sorry, this is not statistically significant. Let’s just go with white lights…

Use

Either the OR or risk ratio (RR) could be used in many study types. However, only the OR can be used in case-control studies. Because in order to calculate the RR, one must know the risk. Risk is a probability, a proportion of those exposed with an outcome compared to the total population exposed. This is impossible in a case-control study, in which those who already have the outcome are included without knowing the total population exposed.

Risk Ratio

RR is a very intuitive concept. It is the probability (or risk) of one outcome over the probability (risk) of another. Let’s use a study we covered on JF to discuss this concept. Survival was lower in pediatric patients intubated during arrest compared with those not intubated: 411/1135 (36%) vs 460/1135 (41%). So, the RR is 36.2%/40.5% = 0.89. This means survival was reduced by a factor of 0.89 for pediatric arrest patients who were intubated during arrest vs. those who were not. As an example, if survival was expected to be 40%, then intubating during arrest would reduce it to: 40% x 0.89 = 35.6%. Let’s do one more example. Supination-flexion (SF) vs hyperpronation (HP) to reduce nursemaid’s elbow was more likely to fail. The risk of failure with SF was 96/351 (27%) vs. 32/350 (9%) with HP. The RR was 3. This has a very intuitive meaning: risk of failure with SF was three times more likely than HP.

How to make $1,000 in a day?
How to make $1,000 in a day?

How to Make 1,000 a Day Get Paid to Do Market Research. One of the fastest ways you can begin making money is by giving your opinion. ... Get Paid...

Read More »
What are the 3 types of bets for draw games?
What are the 3 types of bets for draw games?

Three-way lines are offered in most competitions where a draw is a possible outcome. They are available on a variety of sports as moneyline, game...

Read More »

Odds Ratio

The OR is a way to present the strength of association between risk factors/exposures and outcomes. If the OR is <1, odds are decreased for an outcome; OR >1 means the odds are increased for a given outcome. Let’s look at the examples again and consider odds. For pediatric arrest, the risk of survival if intubated during arrest was 411/1135 (36%) vs 460/1135 (41%) if not intubated. Let’s convert to odds and calculate an OR.

Intubated: 411/1135-411 = 411/724 = 0.57 odds.

Non-intubated: 460/1135-460 = 460/675 = 0.68 odds.

So, the OR is 0.57/0.68 = 0.83 .

Note, this is very close to the RR (0.89) but is a slight overestimate of the effect on the outcome. This is always the case with the OR compared to the RR – it overestimates the effect. Take the example of supination-flexion vs hyperpronation for nursemaid’s. The risk of failure for SF was 96/351 vs. 32/350 with HP. Let’s convert this to odds.

SF: 96/351-96 = 0.376 odds

HP: 32/350-32 = 0.10 odds

The OR is 0.376/0.10 = 3.7

Note, the OR overestimates the RR, which was 3. Although one could say the risk of failure using SF is 3 times greater than HP, one could not say, based on the OR, the risk was 3.74 times greater. The OR and RR are not the same. What could be said is that the odds of failure is 3.74 times greater.

Risk Ratio vs Odds Ratio

Whereas RR can be interpreted in a straightforward way, OR can not. A RR of 3 means the risk of an outcome is increased threefold. A RR of 0.5 means the risk is cut in half. But an OR of 3 doesn’t mean the risk is threefold; rather the odds is threefold greater. Interpretation of an OR must be in terms of odds, not probability. Again, the OR will always be an overestimate compared to the RR. However, the RR and OR will be similar for rare outcomes, <10%. But the OR increasingly overestimates RR as outcomes exceed 10%. This is easier to understand with an example.

Pretend a new vape, Vapalicious, is associated with cancer.

80/100 people who use it get cancer.

20/100 who don’t use it get cancer.

The risk of getting cancer is 4 times greater in Vapalicious users. RR = 0.8/0.2 = 4 Note how distorted the OR becomes in this example. OR = (80/20)/(20/80) = 16

Do home teams win more often?
Do home teams win more often?

In the NHL, 59% of games are won by home teams. In rugby, the win rate for home teams is 58%, while in American football, it's 57.6%. In the United...

Read More »
What sport is hardest to bet?
What sport is hardest to bet?

Baseball. Baseball is the hardest sport to bet on, and it comes in at the top of the list. In spite of the fact that I love to bet on the American...

Read More »

What if Vapalicious rarely caused cancer?

5/1000 get cancer with Vapalicious vs 2.5/1000 for non-users.

RR = 2.

OR = 2 as well (actually 2.005)

With rare outcomes, the RR and OR are very similar.

Why Does This Matter?

This matters because we often equate the OR and RR. Unwary researchers, reviewers, or news media might report a 16-fold increased risk of cancer from Vapalicious. In fact, there was a 4-fold increased ris k of cancer from Vapalicous. Not that I plan to use Vapalicious (or any other vape), but a 16-fold vs 4-fold increase is a gross overestimation of the effect.

What Does the OR Mean?

So, what does an OR mean? Here it is in plain language.

An OR of 1.2 means there is a 20% increase in the odds of an outcome with a given exposure. An OR of 2 means there is a 100% increase in the odds of an outcome with a given exposure. Or this could be stated that there is a doubling of the odds of the outcome. Note, this is not the same as saying a doubling of the risk . risk An OR of 0.2 means there is an 80% decrease in the odds of an outcome with a given exposure.

Summary

Odds Ratio is a measure of the strength of association with an exposure and an outcome. OR > 1 means greater odds of association with the exposure and outcome. OR = 1 means there is no association between exposure and outcome. OR < 1 means there is a lower odds of association between the exposure and outcome. If the 95% confidence interval for the OR includes 1, the results are not statistically significant.

OR and RR are not the same.

OR always overestimate RR, but…

OR approximates RR when the outcome is rare but markedly overestimates it as outcome exceeds 10%.

References

What does +3 mean on a parlay?
What does +3 mean on a parlay?

A three-leg parlay is a parlay that consists of three bets. To win the parlay, bettors must win each individual leg. Dec 8, 2022

Read More »
What do the Irish call the English?
What do the Irish call the English?

Hiberno-English Irish English Native to Ireland Region Ireland (Republic of Ireland and Northern Ireland); Great Britain; United States; Australia;...

Read More »
How much do I win on a 5'2 bet?
How much do I win on a 5'2 bet?

5 to 2 odds payout If you wager a bet on a 5/2 betting odds selection and you win, your total payout will be 3.50 which is your stake back plus...

Read More »
Is draw no bet good?
Is draw no bet good?

Draw no bets are popular among many bettors who want the upside of an underdog, but the safety of the match ending in a draw. In the case of...

Read More »