What is ARR? Be able to determine the % of risk.
Understand the Problem
The question is asking for the definition of ARR (Annual Recurring Revenue) and how to calculate the percentage of risk associated with it. This involves understanding financial metrics and risk assessment.
Answer
ARR is the difference in event risk between a control and treatment group in clinical trials.
Absolute Risk Reduction (ARR) is calculated by subtracting the risk of an event occurring in the treatment group from the risk of the same event in the control group, often used in clinical trials. It quantifies the percentage risk reduction as absolute terms between two groups.
Answer for screen readers
Absolute Risk Reduction (ARR) is calculated by subtracting the risk of an event occurring in the treatment group from the risk of the same event in the control group, often used in clinical trials. It quantifies the percentage risk reduction as absolute terms between two groups.
More Information
The Absolute Risk Reduction (ARR) offers a direct measure of clinical effectiveness, allowing healthcare professionals and researchers to understand the benefits of a treatment in a straightforward manner. This is valuable in the decision-making process when considering different treatment options.
Tips
A common mistake is confusing ARR with Relative Risk Reduction (RRR). While ARR provides the straightforward difference in risk, RRR expresses the reduction as a percentage of the baseline risk, which can sometimes be misleading.
Sources
- What Is Accounting Rate of Return (ARR)? - Investopedia - investopedia.com
- Absolute Risk Reduction (ARR) - Definition and Calculation - YouTube - youtube.com
- Common pitfalls in statistical analysis: Absolute risk reduction ... - pmc.ncbi.nlm.nih.gov
