# Relative Risk

Posted in Statistics, Total Reads: 793

## Definition: Relative Risk

Relative Risk is defined as the risk of any event relative to its exposure for different groups. It measures the success of one event with respect to the other. It is generally used in health industry to compare the ratio of risk of disease among people exposed to it( i.e, with the risk) to those without the risk factor.

Relative Risk (RR) =Prob. When event appears/  Prob. When event doesn’t appear

= Prob. With risk/ Prob. Without Risk

Example: Out of 10 cars 5 suffer accident and 5 don’t and out of 10 trucks, 8 suffer accident and 2 don’t. Then Relative risk of accident for trucks is:

8/(8+2)/5/(5+5)= 1.6

This means that trucks are more prone accidents than cars as RR>1

It would be other way round if RR<1

For, RR=1, there would be no effect.

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

Search & Explore : Management Dictionary

Similar Definitions from same Category: