a) You would like to design a survey to estimate quality weights for cost effectiveness analysis....
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a) You would like to design a survey to estimate quality weights for cost effectiveness analysis. You would like to use a method that provides accurate estimates that are not sensitive to risk aversion. Which survey method would you use? Describe your choice and explain why you recommend using this survey method (15 marks) b) Suppose Jake has been experiencing back pain, and has four options for treatment as shown in the table below: Treatment Regimen Do Nothing Chair Cushion Cortisone Injections Acupuncture Potential therapies for back pain Total Cost ii. €0 €100 €700 €1000 Pain Reduction 0 units 20 units 20 units 50 units i. Plot these four treatments on a graph with cost on the X axis and pain reduction units on the Y axis. Create a cost effectiveness frontier. Label your graph clearly. Note: You do not need graph paper. (5 marks) Calculate the incremental cost effectiveness ratio (ICER) between acupuncture and a chair cushion. (5 marks) a) You would like to design a survey to estimate quality weights for cost effectiveness analysis. You would like to use a method that provides accurate estimates that are not sensitive to risk aversion. Which survey method would you use? Describe your choice and explain why you recommend using this survey method (15 marks) b) Suppose Jake has been experiencing back pain, and has four options for treatment as shown in the table below: Treatment Regimen Do Nothing Chair Cushion Cortisone Injections Acupuncture Potential therapies for back pain Total Cost ii. €0 €100 €700 €1000 Pain Reduction 0 units 20 units 20 units 50 units i. Plot these four treatments on a graph with cost on the X axis and pain reduction units on the Y axis. Create a cost effectiveness frontier. Label your graph clearly. Note: You do not need graph paper. (5 marks) Calculate the incremental cost effectiveness ratio (ICER) between acupuncture and a chair cushion. (5 marks)
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Related Book For
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
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