a. Calculate each programs cost-effectiveness. Ignoring issues of scale, which program is most cost-effective?

b. Assuming that the public health department wishes to vaccinate at least 5,000 children, which program is most cost-effective? Page 2 of 2

c. The programs in the table are sorted from smallest cost and smallest effectiveness to largest cost and largest effectiveness. Calculate the incremental cost effectiveness ratio (ICER) of switching from A to B, from B to C, from C to D, and from D to E.

d. Using only your ICER answers to part c, which program should the health department adopt assuming that each vaccination provides social benefits equal to $20? Explain how you came to that conclusion.

e. Now calculate the NPV of each program assuming that each vaccination provides social benefits equal to $20. Based on this cost-benefit analysis, which program should the health department adopt? (Hint: you should get the same answer as part d.)

Similar to problem 1 from BGVW Ch. 18) A public health department is considering five alternative programs to encourage parents to have their preschool children vaccinated against a communicable disease. The following table shows the cost and number of vaccinations predicted for each program. Program | Cost (S) | # of Vaccinations 20,000 44,000 2,000 4,000 72.000 6000 112,000 E 150,000 8,000 10,000