MegaMaester

Statistics for Everyday Life · Lesson 3

Risk and Uncertainty

beginner18 min · 7 cards
The big idea
⚠️

Doubled from what?

Relative risk without a baseline is uninterpretable — and it is the format that makes effects look largest.

Try it

Convert the Risk

Doubles a side effect occurring in 1 in 20,000 people.

Convert to absolute numbers first, then decide.

Always ask: doubled from what?

Turn headlines into absolute numbers, then decide.
Compare

The same fact, twice

Relative

"Risk doubled"

Tap.
tap for example ↻
Absolute

1 in 20,000 → 2 in 20,000

Tap.
tap for example ↻

The same move runs in reverse in advertising: "reduces risk by 50%" from 4 in 10,000 to 2.

Key term

When the maths is wrong

Positive expected value — always take the bet?
tap to reveal ↻
Not if you cannot continue
Expected value describes an average over many repetitions. For a one-shot decision where losing ends the game, it is the wrong tool. The arithmetic does not know about ruin.
October 1995

The pill scare

A warning that certain contraceptives roughly doubled thrombosis risk was widely reported as a ratio.

The absolute figures — roughly 15 versus 25 cases per 100,000 users a year — were far less prominent. Many women stopped; unintended pregnancies rose, carrying their own risks.

Quick check

Why can a random sample of 1,000 represent millions?