Likelihood Ratios: How Strong Is the Evidence?

Lesson 3.3 · 9 min read

You’ve just interviewed at a company you really like, and afterward you put your chances of an offer at about one in five. A few days later HR calls and asks, “How soon could you start?” Your pulse quickens. How much should this move your estimate? What matters isn’t whether it sounds like good news, but how well it distinguishes between “they’ll hire me” and “they won’t.”

What a likelihood ratio is

Likelihood ratio = the chance of seeing this evidence if the thing is true ÷ the chance of seeing it if the thing is false.

Suppose 60% of candidates who end up with an offer get asked about their start date, but so do 20% of those who don’t (HR sometimes asks in passing). The likelihood ratio is 60% ÷ 20% = 3.

Updating with odds

Write the probability as odds — “true : false” — and updating becomes a single multiplication:

New odds = old odds × likelihood ratio

Back to the screening test in 3.1: 90% sensitivity and a 9% false-positive rate give a likelihood ratio of 90% ÷ 9% = 10. A 1% prior is 1 : 99; times 10 gives 10 : 99, or about 9.2% — the same answer the 1,000-person grid gave.

This is where the interactive demo “Likelihood-ratio update chain” lives: in the FoMind app you can drag the controls and see results update live.

In the update chain below, add pieces of evidence one at a time and watch how the probability moves at each step.

Two common mistakes

The strength of evidence is its likelihood ratio — ask, “If I’m wrong, how likely would I be to see this anyway?”

Key points

Continue this lesson in the app

  • Interactive demo: Likelihood-ratio update chain
  • 5-question quiz (80% to pass)

FoMind ties every lesson to a real prediction: learn it, use it, check the outcome, and see where your judgment is sharp.

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