A new pneumonia vaccine has been developed which is a little more effective but more expensive to produce than the old vaccine. Medicare covers 100% of the cost of pneumonia vaccinations for everyone in Hahnemann County who is age 65 or older. Now that a new and better vaccine is available Medicare would like to perform a cost-utility analysis to determine the opportunity cost of covering 100% of the cost for the new vaccine.
The old vaccine used to cost $16 per dose to produce. The new vaccine costs $35 per dose to produce. But the cost of catching pneumonia is very high. If either vaccine fails, the cost of treating an infected elderly person is, on average, $1870.
The following are the conditional probabilities of success and failure for both vaccines:
Old Vaccine: Success Rate = 0.84
Old Vaccine: Failure Rate = 0.16
New Vaccine: Success Rate = 0.85
New Vaccine: Failure Rate = 0.15
1. What is the expected value benefit of the old vaccine? What is the expected value benefit of the new vaccine?
2. What is the expected value cost of the old vaccine? What is the expected value cost of the new vaccine?
3. Show the cost-utility ratio for the opportunity cost of continuing 100% coverage for the new vaccine.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 11:50, vdirectioner7634
The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.
Answers: 3
Business, 22.06.2019 20:00, HahaHELPP
In william rathje's garbology project that focused on household waste, front door interviews found 15 percent of respondents saying that they consumed beer. the trash discard from the same area showed what percentage of household's consuming beer
Answers: 1
Business, 22.06.2019 20:20, korireidkdotdot82021
Which of the following entries would be made to record the requisition of $12,000 of direct materials and $6,900 of indirect materials? (assume that indirect materials are included in raw materials inventory.) a. manufacturing overhead 18,900 raw materials inventory 18,900 b. wip inventory 12,000 manufacturing overhead 6,900 raw materials inventory 18,900 c. raw materials inventory 18,900 wip inventory 18,900 d. wip inventory 18,900 raw materials inventory 18,900
Answers: 1
Business, 22.06.2019 23:20, hernandezeileen20
Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?
Answers: 3
Do you know the correct answer?
A new pneumonia vaccine has been developed which is a little more effective but more expensive to pr...
Questions in other subjects:
Mathematics, 04.08.2019 20:00
Chemistry, 04.08.2019 20:00
Mathematics, 04.08.2019 20:00
