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An intervention has the following cost and benefit profile:
Baseline cost =400,000
Range: 200,000 -1,200,000
Baseline benefit=10 life yrs,
Range: 5 - 20
Problem a. Calculate the cost effectiveness ratio.
Problem b. If the cost effectiveness cutoff is 100,000/life yr, when is the intervention not cost effective? What if the cutoff is $50,000 per life yr?
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