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In: Economics

3. Suppose that my utility function is given by U=1-0.2D^2, where D is the value of...

3. Suppose that my utility function is given by U=1-0.2D^2, where D is the value of the disease. The first 4 months of the year, we have the flu, where D=2.The next 2 months, we are in perfect health, where D=0. The last 6 months of the year we have a head cold, D=1. What is the value of QALY? Round to THREE decimal points.

4. Suppose that drug A costs 15,000, and it extends life by 5 QALYS. What is the cost effectiveness ratio?

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