A health economist is conducting the analysis and making a choice between the following two choices: Choice A: there is a certain outcome that the patient will stay in chronic health state X for the rest of his life T Choice B: the treatment has two possible outcomes, either the patient is returned to full Health (1) of the rest of his life T with probability p; the patient dies (0) immediately with the remainig probability What is the utilty value of the health state X? X=P X=PT X=(1-P)/P X=PT/(1-P)
A health economist is conducting the analysis and making a choice between the following two choices: Choice A: there is a certain outcome that the patient will stay in chronic health state X for the rest of his life T Choice B: the treatment has two possible outcomes, either the patient is returned to full Health (1) of the rest of his life T with probability p; the patient dies (0) immediately with the remainig probability What is the utilty value of the health state X? X=P X=PT X=(1-P)/P X=PT/(1-P)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- A health economist is conducting the analysis and making a choice between the following two choices:
Choice A: there is a certain outcome that the patient will stay in chronic health state X
for the rest of his life T
Choice B: the treatment has two possible outcomes, either the patient is returned to full
Health (1) of the rest of his life T with probability p; the patient dies (0)
immediately with the remainig probability
What is the utilty value of the health state X?
- X=P
- X=PT
- X=(1-P)/P
- X=PT/(1-P)
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