A physician is trying to decide whether to prescribe medication for cholerserol

Question

A physician is trying to decide whether to prescribe medication for cholerserol reduction in a 45-year-old female patient. The null hypothesis is that the patient's cholesterol is less than the thershold of treatable hypercholesterolemia. However, a sample of readings over a 2-yesr time period shows considerable variation, usually below but sometimes above the threshold.

Define Type I and Type II error.

List the costs of each type of error (in general terms). Who bears the cost of each?

How might the patient's point of view differ fromt eh HMO's or doctor's?

In what sense is this a business problem? A societal problem? An individual problem?

Explanation / Answer

Type I error will occur in this case if we conclude that the patient's cholesterol is more than the thershold of treatable hypercholesterolemia, when it is actually less. (Ans).

Type II error will occur in this case when we conclude that the patient's cholesterol is less than the thershold of treatable hypercholesterolemia, when it is actually more. (Ans).

For both these type of errors, the error occurs from physician's part. In case of patient bears the economic cost of purchasing medicines and all as he/she has been diagnosed with higher cholesterol.

For Type-II error, the patient will not suffer economically, but his/her health will be effected as inspite of having higher cholesterol level, it is not cured due to false diagnosis.

It is an individual problem if it is related to a single patient. It could a societic problem if the same thing is happening in a particular area with all the patients. It could be a business problem as in case of Type I error it will be benefitial for pharmaceuticals, but not in case of Type-II error.

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