Hazard Ratio

Posted in Information Technology & Systems, Total Reads: 1156

Definition: Hazard Ratio

Hazard Ratio is a term that describes the probability or the chance of events of a hazard/accident/failure occurring at a group relative to the other. It compares two entities- an experiment group and a control/reference group that act as cause of the events.


Ex: Hazard ratio of machines A and B on two different assembly lines is 2.0. This means the rate of failure at machine A is twice the rate of failure at machine B.


Hazard Ratio=    (Rate of failure of the experiment group/ Rate of failure of the control group)


Hazard ratios represent the instantaneous failure rate at a given period, making it starkly different from the relative risk ratios which give the values for a cumulative period. Also, hazard ratios do not give any idea with regard to the actual average failure/hazard rate of any of the groups.

The formula for translating a hazard ratio to a probability is:

Probability = (hazard ratio) / (1 + hazard ratio)

For the above example, the probability would be 1/ (1+2) = 0.33

The confidence interval of a hazard ratio is given by (1-Probability)

Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Hazard Ratio. The Management Dictionary covers over 7000 business concepts from 6 categories.


Share this Page on: