A medical doctor has a patient with coronary artery disease. The decreased flow of blood to the

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A medical doctor has a patient with coronary artery disease. The decreased flow of blood to the heart is causing chest pain and shortness of breath, which has lowered the patient's utility. The patient is presently taking drugs to increase the blood flow to the heart. An alternative is bypass surgery, which can correct the problem and return the patient's level of utility to a more normal level. However, there is a \(4 \%\) probability that the patient will die as a result of the surgery. Use a decision tree to illustrate how the patient would make a decision about whether to have the operation. Assume the patient's normal level of utility is 100 , present level of utility is 50 , level of utility following a successful surgery is 80 , and level of utility following an unsuccessful surgery is 0.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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