Reference no: EM133201059 , Length: 1 Pages
Assignment:
1. There are three approaches of estimating QALYs. There is no right answer to this question. Simply state your preferences. Assume that a person does not have a leg but is perfectly healthy otherwise.
Use visual analogue scale. If it were you, how would you rank your health between 0 and 1 with 0 being dead and 1 being in perfect health. Your q=?
2. There are three approaches of estimating QALYs. There is no right answer to this question. Simply state your preferences. Assume that a person does not have a leg but is perfectly healthy otherwise.
Use time trade-off approach. Pretend that you have 15 years of life left without a leg. How many years of perfect life would be equivalent to 15 years without leg. Years in perfect health =? Calculate q.
3. There are three approaches of estimating QALYs. There is no right answer to this question. Simply state your preferences. Assume that a person does not have a leg but is perfectly healthy otherwise.
Use standard gamble approach. You have a choice between 17 years of life without a leg with certainty or you can choose a medical procedure that gives "p" probability of living a normal health and (1-p) probability of dying. What probability would make you indifferent between these two options? p=?
4. Use willingness to pay approach to calculate value of human life. Probability of a child dying in a car accident is 2 per 100,000 children. Using child car seat reduces probability of dying by 45%. If a car seat costs $120, what is the value of life?
5. You are trying to evaluate cost-benefit analysis of mask wearing during the pandemic. Identify as many indirect & direct costs and benefits of mask wearing as you can.
6. You got sick with a flu and you have two approaches of treatment: 1) buy a chicken soup and ibuprofen that would cost $20 for a 7-day supply; flu lasts 7 days and your quality (utility) weight is .55; 2) take Tamiflu that costs $175 for a 7-day supply; flu lasts 7 days and quality (utility) weight is .6. Calculate incremental cost-effectiveness ratio of the 2nd strategy relative to the 1st.
7. Assume that health-related quality of life over 5 years for diabetic women and treated women represented in the following table. How much would society be willing to pay for the treatment assuming threshold for cost per QALY of $75,000. You can also assume zero discount rate and probability of survival 1 for all these years. (Hint: calculate gain in QALYs first). Show your work.
|
Year
|
Diabetic Women
|
Treated Women
|
|
1
|
0.65
|
0.8
|
|
2
|
0.60
|
0.8
|
|
3
|
0.55
|
0.75
|
|
4
|
0.50
|
0.70
|
|
5
|
0.45
|
0.70
|
8. The following table provides the total social costs and total social benefits from a federal policy to remove dangerous chemicals from our drinking water supplies. What level of removal would you recommend? WHY? Show your work. (Hint: MB=MC)
|
Level of removal
|
Total Costs
|
Total Benefits
|
|
0%
|
$0
|
$0
|
|
10%
|
16
|
86
|
|
20%
|
37
|
157
|
|
30%
|
59
|
219
|
|
40%
|
91
|
282
|
|
50%
|
124
|
336
|
|
60%
|
167
|
384
|
|
70%
|
211
|
428
|
|
80%
|
260
|
465
|
|
90%
|
315
|
485
|
|
100%
|
375
|
500
|