I saw an old thread on this, but I'm a little confused...
Say you have a disease, "step1itis", and being a med student is a risk factor for having it. It affected 3 out of 5 med students but only affected 1 out of 5 pre-meds, so your odds ratio is (3/2)/(1/4) = 6, right? What confuses me is that the odds ratio is 6, but it looks like the med student is only 3x as likely (3 out of 5 vs. 1 out of 5) to have had step1itis. Where does the number "6" come in there in a way that actually aids in our interpretation of the data?
This is a very good question and one that I have thought about too from time to time and it takes a little bit of explaining:
The confusion comes out of another philosophy of looking at chance: the idea of "odds" rather than "probability." In common speak, we'd say, the odds are 2 to 1 that I win, meaning that a ratio exists where for every 2 positive outcomes that I could get by chance, there is also a chance of a 1 negative outcome.
Odds are the probability of success divided by the probability of failure. Compare that to the statement "I have a 2 in 3 chance of winning", where we mean that out of 3 distinct possibilities, 2 are in my favor. Both statements are equivalent but just reflect different ways of thinking about chance.
So in your example, the probability of them getting the disease is 3 times better but the odds ratio (remember odds ratio, not odds by itself) really is 6 times better! This is actually a logically consistent statement!
The concept is a little easier to understand the way it is usually used in biostatistics. Relative risk is always used in prospective studies because we are defining the risk factors and we want to see what the effects are on the probability of outcomes. We have a ratio of target outcomes to all outcomes, which makes sense.
However, in the case-control studies where we use odds ratio, the outcome has already been determined and we are trying to work backwards to see what the risk factors were.
In this scenario, the concept of a building a ratio of people with your risk factor of interest to those with "all risk factors" (your normal construct for probability) makes no logical sense. What in the world would "all risk factors" mean? You would have to construct a ratio of your risk factor of interest to those without your risk factor, which is exactly what the odds are.
The mathematics are a little complicated but they put to work this logical foundation.
In fact, mathematically, as the incidence of the disease approaches zero, the odds ratio will approach the relative risk for the population from which the case-control was sampled. Thus, for all intents and purposes, you can interpret an odds ratio as if it was a relative risk assuming that it is a rare condition.