Relative risk from group compositions

ID: relative-risk-from-group-compositions

Let be the event of membership in the first of two groups and the event of selection. Write , and , with . Bayes' theorem gives the conditional probabilities and . Their risk ratio is the displayed expression: the unknown overall selection probability cancels. Equivalently, it is the ratio of the group-membership odds after selection to those before selection.
When both selection probabilities lie strictly between zero and one, the selection odds ratio is and generally depends on . Thus compositions alone do not identify that odds ratio or provide sample sizes for a standard error. When , the first group's observed selection rate is lower; this comparison alone does not establish a causal effect of group membership.

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