A standardized index for effect intensity, the translocation relative to range (TRR), is discussed. TRR is defined as the difference between the expectations of an outcome under two conditions (the absolute increment) divided by the maximum possible amount for that difference. TRR measures the shift caused by a factor relative to the maximum possible magnitude of that shift. For binary outcomes, TRR simply equals the risk difference, also known as the inverse number needed to treat. TRR ranges from –1 to 1 but is – unlike a correlation coefficient – a measure for effect intensity, because it does not rely on variance parameters in a certain population as do effect size measures (e.g., correlations, Cohens d). However, the use of TRR is restricted on outcomes with fixed and meaningful endpoints given, for instance, for meaningful psychological questionnaires or Likert scales. The use of TRR vs. Cohens d is illustrated with three examples from Psychological Science 2006 (issues 5 through 8). It is argued that, whenever TRR applies, it should complement Cohens d to avoid the problems related to the latter. In any case, the absolute increment should complement d.
Evaluating borrowers’ default risk with a spatial probit model reflecting the distance in their relational network
