Solution-Expected costs per qaly, The discount rate is 0.05

Expected costs per qaly

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Reference no: EM131588879

Suppose Sam has the opportunity for a treatment that will extend his life by one year with a probability of 0.9 by two years with a probability of 0.5 and three years with a probability of 0.3. Sam will die with certainty after three years. QALY weight q1 is 0.9 in year 1, q2 is 0.6 in year 2, and q3 is 0.2 in year 3. The discount rate is 0.05 per year. If the treatment costs are $2,000 in Year 1, $3,000 in Year 2, and $5,000 in Year 3, then the expected costs per QALY for the three year regimen would be approximately:

A. $5,000.

B. $8,000.

C. $50,000.

D. $80,000.

Reference no: EM131588879

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Expected costs per qaly

Reference no: EM131588879

Reference no: EM131588879

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