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Management
Calculate an average cost-effectiveness ratio for Options I, II, and III

Calculate an average cost-effectiveness ratio for Options I, II, and III

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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There are three 3-month-long options to treat studentitis, a depression-like condition in which a student thinks he or she will be in college forever with no option for parole. Results (effectiveness) cannot be determined until students have been exposed to the treatments for a period of 3 months. Option I is the standard option, which consists of group counseling. Option II consists of a new studentitis medication that has not side effects. Option III consists of a combination of the new medication and group counseling. Below are costs and effectiveness data for each option: Option Costs (per Effectiveness month) $100 $50 | (counseling) I (medication) II (combination) $150 Calculate an average cost-effectiveness ratio for Options I, II, and III 40% 50% 60%
Transcribed Image Text:There are three 3-month-long options to treat studentitis, a depression-like condition in which a student thinks he or she will be in college forever with no option for parole. Results (effectiveness) cannot be determined until students have been exposed to the treatments for a period of 3 months. Option I is the standard option, which consists of group counseling. Option II consists of a new studentitis medication that has not side effects. Option III consists of a combination of the new medication and group counseling. Below are costs and effectiveness data for each option: Option Costs (per Effectiveness month) $100 $50 | (counseling) I (medication) II (combination) $150 Calculate an average cost-effectiveness ratio for Options I, II, and III 40% 50% 60%
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