Question

A job training program was delivered to 4,000 unemployed youth who were
randomly selected from a pool of 5,000 eligible applicants. The remaining 1,000
individuals did not receive the program. In the treatment group (of 4,000 trainees),
2,500 had a job at the end of the year. In the control group (of 1,000 individuals),
only 500 had a job. The job training program cost $100,000 total. What is the cost
effectiveness of the program?
a. $25 per job obtained
b. $40 per job obtained
c. $50 per job obtained
d. $100 per job obtained
e. $200 per job obtained
f. $500 per job obtained

Answer 1

e. $200 per job obtained

The training program had 4000 people out of which 2500 got a job. In a group of 1000 people who did not receive the training, 500 got the job means 50% of people get the job.

50% of 4000 is 2000 so in a way, with the help of the program, 500 people got the job which they wouldn't, had they not enrolled in the training program.

$100,000 was spent on the program which basically provided employment to 500 more people because remember, 2000 people still would have got the job(statistically). So the cost per person is

$100,000/500 people

=$200 per person

or $200 per jo obtained