Absolute Risk Aversion

A characteristic of utility functions. It is a measure of the slope of a utility function and its rate of change. See Insurance for an account of how a diminishing marginal utility of income generates a form of risk aversion. See

Arrow-Pratt Measure, Risk Aversion.

2 Absolute Risk Difference Absolute Risk Difference

Same as absolute risk reduction. The absolute arithmetic difference in occurrences of adverse outcomes between experimental and control participants in a clinical trial. The reciprocal of number needed to treat (NNT). Often referred to as ARR. See Number Needed to Treat, Relative Risk Reduction, Odds Ratio.

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