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QUESTION 1 For questions 1 - 6: Given treatments: A: cost $4,000, 60% survival B

ID: 2715603 • Letter: Q

Question

QUESTION 1

For questions 1 - 6:

Given treatments:

A: cost $4,000, 60% survival

B: cost: $7,000, 63% survival

C: cost $11,000, 61% survival

D: cost $10,000, 74% survival

No intervention: 11% survival

1. Which treatment is obviously dominated?

A

B

C

D

No treatment is obviously dominated

3 points   

QUESTION 2

What is the ACER for Treatment D?

$6,666.67

$11,111.11

$13,513.51

$13,461.54

$15,873.02

3 points   

QUESTION 3

How do we interpret an ACER number for a particular treatment?

It signifies cost effectiveness if we move from one treatment to another

It theoretically signifies how much the treatment would cost if probability of survival is 100%

It helps us determine the best treatment option

It signifies a computer brand

3 points   

QUESTION 4

What is the ICER from treatment A to B?

$100,000

$42,857.14

$8,163.27

$6,666.67

3 points   

QUESTION 5

Which treatment is marginally dominated?

A

B

C

D

None of the treatments is marginally dominated

3 points   

QUESTION 6

Which treatments comprise the Cost Effectiveness Frontier?

A, B, C, and D

A, C, and D

A, B, and D

A and D

3 points   

QUESTION 7

What impact does insurance (or having more beneficial insurance) have on to the Cost effectiveness Frontier?

nothing

shifts the CEF to the left

shifts the CEF to the right

it makes treatment choices that used to be obviously dominated now viable

none of the above

3 points   

QUESTION 8

What can we add to the CEF to turn this cost effectiveness tool into a Cost Benefit tool?

insurance

premium

indifference curves

depreciation rate

3 points   

QUESTION 9

Currently, Dywane's probability of survival is 0.7 and  his q value is 0.6. Assuming a discount factor of 0.91, what is his QALY? (rounded-off)

0.38

2.21

- 0.81

1.28

3 points   

QUESTION 10

IN YEAR 2, If the discount rate = 5% what is the discount factor?

0.991

0.912

0.907

0.883

0.874

a.

A

b.

B

c.

C

d.

D

e.

No treatment is obviously dominated

Explanation / Answer

Answer:1 a. A

Answer:2 c. $13,513.51 (10000/0.74)

Answer:3 d. It signifies a computer brand

Answer:4 a. 100000 (3000/0.03)

Answer:5 None of the treatments is marginally dominated

Answer:6 A

Answer:8d Depreciation rate

Answer:9 a. 0.38

=(0.7*0.6*0.91)

Answer:10 c 0.907

=(1/(1.05)2)

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