Medical Decisions: How to Judge Risks

Thanks for submitting your answer to the poll!

The question was: Would you get a cancer screening done if it reduced your chance of dying from this type of cancer by one third?

If you were undecided, you may have wanted more information about the type of cancer. But there is a more important reason why you should not have decided based on the information you got in this scenario: the number (risk reduction by “one third”) is not meaningful at all, because it only gave you information about relative risk reduction, rather than absolute risk reduction. If you get this kind of information from your health care provider, you should ask: “Ok, and what are my chances of dying from this type of cancer without the treatment?” Or more generally, ask for your base risk: your risk without the treatment. Only with that information can you judge the benefit of a treatment. For example, if my initial risk of getting this type of cancer is 6%, the screening will reduce my risk to 4% (the absolute risk reduction would be 2% in that case). If my initial risk is 0.3%  (in other words, if only 3 in 1,000 people from my risk group are developing this cancer), the screening would reduce my risk to 0.2%, which means the absolute risk reduction in that case is only 0.1%. In other words, only 1 in 10,000 people would benefit from the screening in that case. In this second case, the screening would have a much smaller benefit, even if it also reduces my relative risk by one third. (Notice, however, how even the assumption of a base risk of 6%, which would be a very high base risk for any specific type of cancer, makes the treatment seem less urgent than it seemed in the original question.)

Here are different versions of how the information can be presented to you.

  • Relative risk reduction: “If you have this test every 2 years, it will reduce your chance of dying from this cancer by around one third over the next 10 years.”
  • Absolute risk reduction: “If you have this screening test every 2 years, it will reduce your chance of dying from this cancer from around 3 in 1,000 to around 2 in 1,000 over the next 10 years.”
  • Number needed to treat: “If around 1,000 people have this screening test every 2 years, 1 person will be saved from dying from this cancer every 10 years.”

For all those questions, the benefits of the test are identical, except that they are expressed either as a relative risk reduction, as an absolute risk reduction, or as the number of people needed to be treated (screened) to prevent one death from cancer.

Unfortunately, studies overwhelmingly show that many patients do not understand this difference between relative and absolute risk reduction, and that they do indeed evaluate treatments much more favorably if the benefits are presented as relative risk reductions.

What is even more concerning is that doctors and other health professionals (including nurse educators, and even reviewers of grant proposals), succumb to the same bias. Multiple studies have shown that health professionals, just like patients, get confused by numbers about risk reduction, and rate the effectiveness of a treatment much higher when the benefits are described in terms of a relative risk reduction, rather than as an absolute risk reduction or a number needed to treat.

It is therefore quite clear that reporting relative risk reductions without clearly specifying the base rates is bad practice, because not only is the information so incomplete as to be meaningless, but it also leads people – patients as well as providers – to overestimate the benefits of treatments.

Yet unfortunately, this bad practice is still very common, as Gerd Gigerenzer and his colleagues report in an enlightening article. [Please get in touch if you would like to read it and don’t have access to the full text]. According to their review, even articles in leading medical journals often only report relative risk reduction. So do brochures and pamphlets that provide information for patients, although this is perhaps less surprising when the brochures are issued by those who benefit financially from providing treatments.

I’m with Gigerenzer when he advocates for better education and better practices in medical communication. In the meantime, the take home message is simple: when offered any risk reducing treatment, always find out as much as you can about your base risk before making a decision.

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR


Selected References:
Covey, J. (2007). A meta-analysis of the effects of presenting treatment benefits in different formats. Medical Decision Making, 27, 638–654.
Gigerenzer, G., Gaissmaier, W., Kurz-Milcke, E., Schwartz, L. M., & Woloshin, S. (2007). Helping Doctors and Patients Make Sense of Health Statistics. Psychological Science in the Public Interest, 8(2), 53–96.
Naylor, C.D., Chen, E., & Strauss, B. (1992). Measured enthusiasm: Does the method of reporting trial results alter perceptions of therapeutic effectiveness? Annals of Internal Medicine, 117, 916– 921.
Muhlhauser, I., Kasper, J., & Meyer, G. (2006). FEND: Understanding of diabetes prevention studies: Questionnaire survey of professionals in diabetes care. Diabetologia, 49, 1742–1746.
Sarfati, D., Howden-Chapman, P., Woodward, A., & Salmond, C. (1998). Does the frame affect the picture? A study into how attitudes to screening for cancer are affected by the way benefits are expressed. Journal of Medical Screening, 5, 137–140.

 

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Featured Video: Raise Your Children As Entrepreneurs

Entrepreneurial skills are not a part of traditional education, even though they are important if we want to empower more people to make an independent living in a world where not everyone can find a good job.

In this TED talk, Cameron Herald argues that we should encourage and foster those skills in children. He makes a case that entrepreneurial traits occur quite naturally in children and can be encouraged and reinforced in playful ways. He gives many practical suggestions how parents can help their children develop those skills. For example, rather than giving children allowances and thereby getting them used to expecting a regular paycheck, children could be paid for specific projects.

Many important traits could be developed in that way, including such big ones as creativity, social skills, a proactive attitude towards working, and an understanding of what it means to create value for others.

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR



Poll Results: My Readers’ Guesses on Retirement Savings

Thanks to all of you who submitted your guesses on retirement decisions!

You can still access the poll, and read the original post.

We always hear that people are not saving enough money in this country, and I was therefore curious to find some actual data on how people are doing with their retirement savings. But I was also curious as to how my readers would estimate the numbers. Here are the results of my little poll and my search:

Poll results. My readers' guesses on retirement savings

Poll results. My readers’ guesses on retirement savings, compared to data from the U.S. Census Bureau.

My readers’ guesses are shown in red, and the correct answers according to the U.S. Census Bureau in blue.

Sadly, it turns out you all were not nearly pessimistic enough! The actual data look a lot bleaker than my average reader’s guess. As many as 80% of Americans aged 30-54 believe they will not have enough money for retirement; 38% don’t save anything at all, and only 4% of those who started working by age 25 have an adequate capital for retirement by age 65. Those numbers should scare all of us, whether we are in the fortunate few percent or not.

Income and inheritance inequality aside, what can help people save more money and make the best financial decisions for themselves?

One of the many possible answers is – as so often – educationFinancial illiteracy is widespread among older Americans, and financial knowledge and planning are very much interrelated: people with more financial knowledge are more likely to plan and to succeed in their planning. Also, those who do plan are more likely to rely on formal methods, such as retirement calculators, seminars, and experts, and less likely to rely on family or friends. A different study showed that well-informed people are also far more responsive to pension incentives than the average person. In addition, researchers keep discovering more and more thinking traps we tend to fall into when making financial decisions. Once we know those traps, we can better avoid them.

Oh, and there’s a new app. Of course there would be. I have not tried it myself, but I have many reasons to believe that an app like this one could truly help people save: it turns “saving” into a more tangible action, it adds accountability, it has the character of a game, and it allows you to set rules (such as “whenever I buy coffee, I also put 1$ in my savings account”). In other words, it can trick you into making the decisions that your ideal self would make.

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR

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Decision Trees Made Easy

Decision Tree for a 10-Year Old

This may well be the most unusual article I’ve ever come across in any peer-reviewed journal (it was published in an open access journal, so you can get the full text pdf here):

Mullin, Barbara & Roger, commented by Jack Dowie and Rex V. Brown.
Mhairi’s Dilemma: A study of decision analysis at work.
Judgment and Decision Making, 3, (8) (2008), 679–689.

It’s a case description of how a dad (Roger Mullin, a teacher of decision support systems) used a decision tree to help his 10-year old daughter, Mhairi, make a very difficult emotional decision: she had to decide whether to attend a dear friend’s funeral or not.

Decision trees are, in my own experience, one of the hardest tools to teach, as powerful as they are. They involve calculations with probabilities, which people are notoriously bad at – even people much older and more educated than the child in this case. Accordingly, they are not used that often, even by professionals. As Mullin states himself: “For over 20 years of teaching decision making, I have been struck by how resistant many professionals are to analytical approaches. A common complaint, whether from medical practitioners, social workers, police officers, business executives or other well educated groups, is that it is too difficult for their clients or even colleagues to understand and far too difficult to involve them in the process.”

Roger Mullin has my fullest respect and admiration for using this tool, not only with his child, but for a decision so emotional and hard to quantify. In this report (which includes his wife’s perspective and reflections), Roger Mullin makes a very strong case that a formal analysis is not at all incompatible with being sensitive, caring and effective.

Decision Trees Made Easy for the Rest of Us – Video

I have searched widely for good explanations of decision trees, and found many dry and complicated papers along the way. However, here is a video that is refreshingly simple (though not always pretty):


It provides straightforward instructions how to draw a decision tree, and how to calculate expected values with it.

If you give it a try for your own decisions, I’d love to hear about your experience.

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR

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Help Me Test a New Coaching Tool

I’m looking for a few volunteers to test a new coaching tool that I might use in online coaching sessions.

I’ve recently discovered this collaborative brainstorming platform: Stormboard. It lets you organize virtual sticky notes on a shared screen.Since some of my favorite coaching methods involve sticky notes, I’m thinking this might be an exciting visual tool to use during Skype or phone sessions with clients.

Test New Coaching Tool
I have already tried it out with a few colleagues, but would love to gain some more experience with it in “apprentice mode”, to figure out whether and how to use it in coaching sessions.

If you’d like to try it with me (in other words, get a free online coaching session), email me. We can work on any problem or decision you’re currently facing. If you don’t have a specific problem right now, we can do an exercise to clarify your core values and explore new decision opportunities.

Depending on the issue you want to work on, one session may of course not be enough to resolve it, but one session should give you a good start so that you can keep working on it afterwards, by yourself or with friends. I promise I will not attempt to sell you additional coaching sessions. The platform itself is free anyway (at least the basic version that we’ll use), so anything we create is yours to keep, and to do with whatever you like afterwards.

Get in touch if you’re interested!

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR



Savings and Retirement Decisions

How many Americans aged 30-54 believe they will not have enough money put away for retirement? According to the U.S. Census Bureau (retrieved from Statistic Brain Research Institute), as many as 80%.Savings and Retirement Decisions 1

How many Americans don’t save anything for retirement? The U.S. Census Bureau estimates 38%.Savings and Retirement Decisions 2

How many Americans who started working at the age of 25, have adequate capital stowed away for retirement by age 65? The correct answer is 4%, again according to the U.S. Census Bureau, as retrieved from Statistic Brain Research Institute.Savings and Retirement Decisions

Decision scientists have long been interested in savings decisions. They have found many reasons why people don’t save enough, and many tricks to get people to save more, which I may write about another time.

One important reason though is probably simply that people are overwhelmed, because there is no one correct answer as to how much we need to save, and how to get there.

However, there are calculators to help you estimate how much you need to save for retirement. I found one by Fidelity that I liked more than others, because it doesn’t ask for a lot of details about your financial situation. You can enter just a few rough estimates and then play around with sliders to see what variables make a difference. Two things I’d like to point out:

  • It’s important to understand how the calculator treats your income: it assumes you’ll want an income during retirement that’s 85% of your pre-retirement income, so that you can maintain a reasonably similar living standard. That means the lower your income, the less you need to save in order to reach that goal and be able to maintain your living standard after retirement. It took me a while to figure this out: that if I enter a lower income, I’ll be more likely to have enough savings. It’s a little counterintuitive, but makes sense.
  • What I found striking and encouraging is how much of a difference the monthly savings can make, regardless of whether you already have a lot of previous savings. It can really hit home to see those estimated bars jump around on the screen just by adding another $100 per month.

Be brave and try it for yourself!

Sources and additional reading about savings and retirement decisions:

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR



Book and Video Recommendation: Skills Are More Important Than Passion

“Follow your passion” is a very commonly heard career advice, but Cal Newport argues it’s actually quite terrible as a guiding principle.

In his quest to figure out how people find great careers, he found not only that preexisting passions are very rare, but that they have little to do with how most people end up loving their work. The pressure to “find our passion” can therefore unnecessarily lead to anxiety, dissatisfaction and unproductive career changes.

Instead, passion for a career seems to come after you put in the hard work of becoming excellent at something that adds value to other people’s lives, not before.

This is the book that resulted from his research, and where he includes more advice on how to go about building a career based on skills:

Cal Newport (2012). So Good They Can’t Ignore You – Why Skills Trump Passion in the Quest for Work You Love.

If you prefer to listen, here’s a video of him giving a talk about it to Google employees (the actual talk is only 25min):

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR

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Infographic: Roadmap for Smarter Decisions

Do you like treasure maps?

I do. So I’ve created one on how to make smart decisions. You can download it directly as a two-page pfd:

Roadmap To Smart DecisionsHow to make better decisions - Summary

Or, find it here among other free resources.

The infographic provides a roadmap and ultra-brief guideline on how to make smart decisions.
It is also available as a large colored post-card, with the map on the front and the step-by-step summary on the back side. I’m happy to give those away, let me know if you’d like one (or more).

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR



Book Recommendation: Strategic Decision Making

Craig W. Kirkwood (1997). Strategic Decision Making: Multiobjective Decision Analysis with Spreadsheets.

*** Geek Alert! ***

Skip this month’s book recommendation if you don’t like spreadsheets. This book by Craig Kirkwood is all about spreadsheets, and how to use them to make smart decisions.

It goes way beyond anything I’ve ever taught in my own classes, and beyond anything I will probably ever use, even in my consulting work. But it’s great stuff! So yes, this is a book for geeks.

If that’s you: I have a copy that you’re welcome to borrow (it’s out of print and very expensive to buy at this point). AND: when you pick it up in my office in Portland, I’ll treat you to an excellent Affogato at Spella Caffe. Just because I like to talk to geeks, and I assume you like ice cream too.

by Ursina Teuscher at Teuscher Counseling, LLC



Do Reading and Writing Make you More Creative?

A study by Amber Y. Wang gives us reason to think so: students who spent more time reading and writing performed better on creativity tests.

The study only investigated the correlations however, so it can’t tell us what’s cause and what’s effect. Reading and writing might indeed lead to more creativity, but it’s also possible that creative people naturally feel more drawn to reading and writing, or that other factors influence all of it together: reading, writing and creativity.

What we can say in any case is that both reading and writing are related to creativity.

by Ursina Teuscher at Teuscher Counseling, LLC



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