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Understanding the difference between relative risk and absolute risk can help you make decisions based on accurate information, not fear. While relative risk can be useful in some situations, it’s important that you understand when it’s being used and what it actually means so you won’t be manipulated to make choices based on scary sounding numbers and percentages. | Ann Bennett
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What is the difference between absolute and relative risk aversion?
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It’s very important to understand relative risk/change vs. absolute risk/change. News outlets often take advantage of the fact that many people may not understand this in order to publish attention grabbing headlines. Relative change - By what percentage (larger or smaller) did the number change from the original number? Absolute change - What is the difference between the original number and the new one? If someone tells you something contains x% more or less or increases or decreases risk by x
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It’s vital that you understand the difference between absolute and relative risk and how these numbers can be used to manipulate! | Ann Bennett
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