3. Suppose that an individual has two options: • She can live with frequent migraine attacks...

3. Suppose that an individual has two options:

• She can live with frequent migraine attacks for 30 years, valued at a quality-of-life weight of 0.4 per year, without any treatment.

• Or she can undergo a treatment with which she will regain full health, valued at a quality-of-life weight of 1 per year, but live for only 20 years. The treatment costs $200,000.

a) Calculate the incremental cost-effectiveness ratio (ICER) of the treatment using the difference in quality-adjusted life-years (QALYs) in the denominator.

b) If society values an additional QALY at $100,000, is this treatment worth its cost?

Expert Solution

Answer-

Rahul Sunny answered 2 years ago

Suppose that the manager of the MileagePlus frequent flier program is promoted and consequently another individual...

Suppose that the manager of the MileagePlus frequent flier program is promoted and consequently another individual is hired to replace him. Also suppose that United publishes in internal documentation that the average number of Premier Qualifying Miles (PQM) earned by individuals who travel for work at least once a month is 45,000 with a standard deviation of 5,000 miles. Further suppose that the new manager desires to test the claims that United has made to see if the statistics have...

3. Kelsey just won the lottery, and she must choose among three award options .She can...

3. Kelsey just won the lottery, and she must choose among three award options .She can elect (1) to receive a lump sum today of $62 million, (2) to receive end-of-month payments of $0.8 million for 10 years or (3) to receive end-of month payments of $0.47 million for 30 years. If she can earn 9% annually (i.e., the discount rate is 9% per year), which is the best choice based on the PV of the three award options? a)...

Consider an individual who lives for two periods t = 1, 2. Suppose she is in...

Consider an individual who lives for two periods t = 1, 2. Suppose she is in debt and, given an interest rate r, she optimally decides to consume (C1;C2). Now, imagine that the interest rate r falls. What do you expect to happen to her optimal consumption in the two periods? Explain your answer referring to income and substitution e§ects, to the budget constraints, and the Euler equation.

3. Name two types of common attacks on security and explain how we can test them.

Sophia Martin wants to travel around the world. Sophia has three options she can pursue: she...

Sophia Martin wants to travel around the world. Sophia has three options she can pursue: she could continue to work full time to earn the money she needs for her trip, she could work part time so that she can still earn some money but have the time necessary to complete her trip, or she could take full retirement so that she has all the time necessary to complete her trip. Which step in the financial planning process does this...

A 26-year-old woman reports that she has a severe migraine and has taken six times more...

A 26-year-old woman reports that she has a severe migraine and has taken six times more than the recommended dose of aspirin for the past 3 days to relieve her headaches. Her plasma pH is 7.24. Which of the following would you expect to find compared with normal?

An individual has a nice project of a new product, but needs money for that. She can only produce if she raises the amount

An individual has a nice project of a new product, but needs money for that.She can only produce if she raises the amount of money required (noted "K")She has the possibility of raising K if she participates on a given program (let's say, a government program).The probability of raising K through this money is p.However, to participate on this program, she needs to incur some costs c < K.The problem is that there is a probability (1 - p) that...

A researcher believes she has found a gene that is associated with having panic attacks. Ten...

A researcher believes she has found a gene that is associated with having panic attacks. Ten out of her 15 panic patients have the gene, whereas only 5 out of 25 control subjects have the gene. What is the value of the chi-square statistic she should use to test the association between the suspected gene and the tendency to have panic attacks? 4.36 5.23 6.83 8.71

3. A market consists of two segments, A and B. An individual in segment A has...

3. A market consists of two segments, A and B. An individual in segment A has a demand function of q = 60 − p. An individual in segment B has a demand function of q = 60 − 2p. Suppose that each segment consists of one consumer. There are no costs of production. a. Suppose that a monopolist must charge the same price to both segments. What is the profit-maximizing price? What are the profits? Briefly explain your approach...

1. Debbie is about to choose a career path. She has narrowed her options to two...

1. Debbie is about to choose a career path. She has narrowed her options to two alternatives. She can either become a marine biologist or a concert pianist. Debbie lives two periods. In the first, she gets an education. In the second, she works in the labor market. If Debbie becomes a marine biologist, she will spend $15,000 on education in the first period and earn $472,000 in the second period. If she becomes a concert pianist, she will spend...

Question